Need Help:

An asset's book value is $25,200 on January 1, Year 6. The asset is being depreciated $350 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $17,900, the company should record:

Multiple Choice

A. A loss on sale of 1,000

B. Neither a gain or loss is recognized on this type of transaction.

C. A loss on sale of 500

D. A gain on sale of 1,000

E. A gain on sale of 500