Crouch Company purchased a new machine on May 1, 1998 for $176,000. At the

time of acquisition, the machine was estimated to have a useful life of ten years

and an estimated salvage value of $8,000. The company has recorded monthly

depreciation using the straight-line method. On March 1, 2007, the machine was

sold for $24,000. What should be the loss recognized from the sale of the

machine?

a. $0.

b. $3,600.

c. $8,000.

d. $11,600.