gage Co. purchases land and constructs a service station and car wash for a total of $540,000. at January 2, 2021, when construction is completed, the facility and land on which it was constructed are sold to a major oil company for $600,000 and immediately leased from the oil company by Gage. Fair value of the land at time of the sale was $60,000 . the lease is a 10-year, noncancelable lease. gage ueses straight-line depreciation for its other various business holdings. The economic life of the facility is 15 years with zero salvage value. title to the facility and land will pass to gage at termination of the lease. A partial amortization schedule for this lease is as follows:

	Payments	Interest	Amortization	Balance
Jan. 2, 2025				600,000
Dec. 31, 2025	97,646.71	60,000	37,646.71	562,353.29
Dec. 31, 2026	97,646.71	56,235.33	41,411.38	520,941.91
dec. 31, 2027	97,646.71	52,094.19	45,552.52	475,389.39

From the view point of the lessor, what gain or loss on disposal of Plant Assets will be recorded in connection with this transaction?

A) ____ gain on disposal of Plant Assets

B) No gain or loss is recognized on disposal of the Plant Assets

C) ____ loss on disposal of Plant Assets