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.

$2,000 gain is not correct. I got it wrong.

a. $400 gain

b. $2,800

c. $1,300

Please explain your answer, thank you!