On January 1, 2016, Horton Inc. sells a machine for $25,600. The machine was originally purchased on January 1, 2014 for $46,200. 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 gain of $2,120 would be recorded. a loss of $2,120 would be recorded. a loss of $20,600 would be recorded. a gain of $25,600 would be recorded.