On January 1, 2016, Horton Inc. sells a machine for $26,600. The machine was originally purchased on January 1, 2014 for $48,700. The machine was estimated to have a useful life of 5 years and a residual value of $0. Horton uses straight-line depreciation. In recording this transaction:

a loss of $2,620 would be recorded.

a loss of $22,100 would be recorded.

a gain of $26,600 would be recorded.

a gain of $2,620 would be recorded.