Footloose Limited acquired furniture and fittings on 1 October 2019 for $40 000. The estimated useful life of the furniture and fittings at the acquisition date was 8 years and the residual value was $2000. The company sold all the furniture and fittings on 1 January 2022 for $24 000. The financial year ends at 31 December. The reducing balance method is used to estimate the depreciation rate, i.e., 20% per year. How much gain or loss should be recognized for the disposal of the furniture and fittings.

Group of answer choices

Loss $480

Loss $320

Gain $896

Gain $744