On May $1,2015,$ Casico Toy Inc. purchased a new piece of equipment that cost $$52,000.$ The estimated useful life is five years and the estimated residual value is $$4,000.$ During the five years of useful life the equipment is expected to produce $20,000$ units.

If Casico Toy Inc. uses the straight line method of depreciation and sells the equipment for $$15,500$ on May $1$st$,2018.$ What will be the realized gain $($loss$)?$

Multiple Choice

None of the other alternatives are correct

$$25,200$

$$(3,700)$

$$9,700$

$$3,700$