Ngu owns equipment that cost $104,900 with accumulated depreciation of $71,600. Ngu asks $37,850 for the equipment but sells the equipment for $34,900. Compute the amount of gain or loss on the sale.

• $4,550 gain.

• $4,550 loss.

• $1,600 gain.

• $2,950 gain.

• $1,600 loss.