Mega Limited acquired the net assets of Tech Limited. Mega Limited provided an item of furniture as part of the consideration. The fair value of the equipment was $50 000. It cost $80 000 and had a carrying amount of $46 000. Which of the following entries appropriately reflects the gain or loss on the equipment?

Select one:

DR Loss on sale $4000

CR Gain on sale $4000

Dr Gain on sale $4000

CR Loss on sale $4000