On January $1,2017,$ Coronado Industries purchased for $$690000,$ equipment having a useful life of ten years and an estimated salvage

value of $$48600.$ Coronado has recorded monthly depreciation of the equipment on the straight$-$line method. On December $31,2025,$

the equipment was sold for $$152500.$ As a result of this sale, Coronado should recognize a gain of

$$0.$

$$39760.$

$$152500.$

$$88360.$