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Florence Corporation sells a piece of equipment on April 1, 20X6 for $21,000. It was originally purchased on July 1, 20X4 for $46,000. On that date it was assigned a residual value of $4,000 and a life of 3 years. What gain or loss should be recorded on the sale?

Select one:

a. $500 loss

b. $3,000 gain

c. $10,500 gain

d. $500 gain

e. $3,000 loss