On January 1, 2009, Kyla Co. purchased an equipment for $760,000. The equipment has a useful life of ten years and an estimated salvage value of $40,000. Kyla Co. has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2016, the equipment was sold for $140,000. As a result of this sale, Kyla should recognize a 1) a loss of $28,000. 2) a gain of $28,000. 3) a loss of $44,000. 4) a gain of $44,000