Equipment was purchased for $24,000 on January 1, 2016. The equipment's estimated useful life was five years, and its residual value was $4,000. The straight-line method of depreciation was used. The equipment was sold for $25,000 on January 3, 2017. The company has a calendar year accounting period. Compute the gain or loss on the sale.

A. Loss on sale $4000

B. Gain on sale $5000

C. Loss on sale $5000

D. Gain on sale $4000