Jupiter Corporation has a plant with a cost of $3,000,000 and accumulated depreciation of $1,500,000. The company has decided to sell the plant for $1,500,000. The company is also considering scrapping the plant for a salvage value of $50,000.

a) What is the gain or loss on the sale of the plant?

b) Should the company sell the plant or scrap it?

Assume that the company uses the straight-line method of depreciation and that the book value of the plant is equal to its carrying value.