Question 21 2.5 points Save Answer On July 1, 2019, two of Rod Co's motorbikes was broken by vandals. The bikes were purchased for $20,000 on January 1, 2015 and had been depreciated using the straight-line method (assuming a $2,000 salvage value and 12 year useful life), Rod Co. received $12,500 under its insurance policy on the bikes, and plans to use these proceeds to replace them. What amount should Rod report in the income statement on the disposal of the bikes? A $7,500 loss. B. $750 loss. C. $1,250 gain. D. None of the above