Gee Enterprises purchased machinery on January 1, 2015 for $75,000. Gee Enterprises sold the machinery on January 1, 2020 for $40,000. The machinery originally had a useful life of 10 years. As of January 1, 2020, the machinery had $37,500 of accumulated depreciation tied to it. Compute the amount of gain or loss on the sale of the machinery.

A. Loss of $2,500

B. Loss of $7,500

C. Gain of $7,500

D. Gain of $2,500

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