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Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of

Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of sale, the company should record:

A gain on sale of $5,000.

A gain on sale of $2,000.

A loss on sale of $2,000.

A loss on sale of $45,000.

A loss on sale of $5,000.

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