On January 1, 2016, Horton Inc. sells a machine for $23,000. The machine was originally purchased on January 1, 2014 for $40,000. 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 $1,000 would be recorded.

a gain of $1,000 would be recorded.

a loss of $17,000 would be recorded.

a gain of $23,000 would be recorded.