Marigold Corp., which has a calendar year accounting period, purchased a new machine for $94500 on April 1, 2016. At that time Marigold expected to use the machine for nine years and then sell it for $9450. The machine was sold for $50500 on Sept. 30, 2021. Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be

$3250.

$0.

$9450.

$5250.