Question 122

On January 1, 2009, Mill Corporation purchased for $760,000, equipment having a useful life of ten years and an estimated salvage value of $40,000. Mill has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2017, the equipment was sold for $140,000. As a result of this sale, Mill should recognize a gain of:

a. $0.00

b. $140,000

c. 28,000

d. 68,000