On March 1, 2015, ABC Company buys a copy machine for use in its business for $20,000. The copy machine is five-year property and is depreciated using the DDB method. The company sells the copy machine for $10,000 on December 31, 2016. Determine the amount of gain/loss the company realizes on the sale.

$400 gain

$2,800 loss

$1,300 gain

Please explain your answer thank you!