How to figure the loss?

The Cromwell Company sold equipment for $35,000. The equipment, which originally cost $120,000 and had an estimated useful life of 10 years and $20,000 residual vallue, was depreciated for four years using he straight-line method. What should Cromwell report the following on its income statement in the year of sale?

Is it: 120,000-20,000=100,000 divided by 10 years to arrive at $10,000 depreciation for each of the four years = $40,000 depreciation; 60,000 book value at the end of the fourth year, minus $35,000 sale = $25,000 loss?