Friend Corporation sold a piece of equipment on March 31, 2017 for $35,000 cash. The equipment had been purchased on December 31, 2008 for $165,000. It had an estimated useful life of 10 years and a $15,000 residual value. Friend Corp. has been using the straight-line method of depreciation and has a year-end of December 31st.

The book value at the date of sale was:

Select one:

a. $56,250

b. $41,250

c. $30,000

d. $26,250

e. $45,000

The gain or loss on the sale was:

Select one:

a. $11,250 loss

b. $5,000 gain

c. $15,000 gain

d. $6,250 loss

e. $10,000 loss