On July 1,20 Y6, Fleming Company sells machinery for $240,000. The machinery originally cost $600,000, had an estimated 5-year life and an expected salvage value of $100,000. The Accumulated Depreciation account had a balance of $400,000 at the date of the sale. The gain or loss on disposal is: 10,000 loss 40,000 gain 40,000 loss 10,000 gain