on july 1, 2016, ABC company purchased a fixed asset for $50,000. The fixed asset had a 5-year estimated uselife life, $5,000 salvage value, and wwas depreciated using the straight line method. ABC sold the fixed asset on January 1, 2018 for $40,000. What gain or loss would be reported on the sale of the fixed asset using straight line depreciation?

a. 3,500 gain

b. 5,000 loss

c. 3,500 gain

d. 5,000 loss