On January $1,2017,$ Vaughn Manufacturing purchased for $$666000,$ equipment having a useful life of ten years and an estimated

salvage value of $$45600.$ Vaughn has recorded monthly depreciation of the equipment on the straight$-$line method. On December $31,$

$2025,$ the equipment was sold for $$137500.$ As a result of this sale, Vaughn should recognize a gain of

$$0.$

$$29860.$

$$75460.$

$$137500.$