Hi; Could you also give an explanation about what makes it a Gain or a Loss.

Company purchased a machine for $10,600 on January 1,2016 . The machine has been depreciated using the straight-line method assuming it has a four-year life with a $1,000 residual value. McKnight sold the machine on January 1, 2018, for $8,000. The book value as of December 31,2017 is $5,00. What gain or loss should McKnight record on the sale? A. Gain, $1,600 B. Gain, $2,200 C. Loss, $2,200 D. Loss, $200