Dullus Oil Company retires one of its long-lived assets. Prior to the retirement, the long-lived asset has a net carrying value of $15,000 and its associated asset retirement obligation account has a balance of $28,000. The company pays $25,000 to settle the asset retirement obligation, while the retired asset is held and unsold. Upon the settlement, the company has to recognize: A. a gain of $3,000.

B. a loss of $12,000.

C. a loss of 25,000.

D. neither a gain nor a loss.