On January 1, 2016, Heather Locks Corporation purchased drilling equipment for $11,500. The equipment has an estimated useful life of 4 years and a salvage value of $200. Given this information, if Heather uses the declining-balance method of depreciation and sells the equipment on December 31, 2017, for $3,000, it will have a (round to the closest dollar)

Select one:

a.$2,750 loss

b.None of the other alternatives is correct

c.$3,469 loss

d.$125 gain

e.$1,562 gain