On May 1, 2017, Pinkley Company sells office furniture for $300,000 cash. The office furniture originally cost $750,000 when purchased on January 1, 2010. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $75,000. What gain should be recognized on the sale?

a.

b.

c.

d.

Select one:

a. $22,500.

b. $47,500.

c. $45,000.

d. $90,000.