On December 31, 2010, Stable Company sold a piece of equipment that was purchased on January 1, 2005. The equipment originally cost $820,000 and has an estimated useful life of eight years. Stable uses the straight-line method of depreciation. What is the gain/loss on the sale of equipment that Stable will recognize if the equipment was sold for $230,000?

1. $230,000 Gain

2. $25,000 Loss

3. $25,000 Gain

4. $73,750 Gain

5. . $0; no gain or loss