Sanchez Enterprises purchased equipment on March 18 , 2018 , at a cost of $ 40,000 . The equipment was expected to have a 10 - year service life , $ 4,000 in residual value . Sanchez uses the declining balance ( 150 % ) method to calculate depreciation On November 21 , 2020 , the equipment was sold for $ 30,000 . Assuming Sanchez used the full - month , half year and full - year ( beginning of period ) conventions , respectively , what amount of gain or loss would be recognized on the sale date ?

Select one :

a $ 2,572 ( 182 ) ( 10 )

b $ 3,597 $ ( 1,450 ) $ 1,100

c. 6,572 , $ 3,818 $ 3,990

d. $ 3,969 $ 909 $ 1,100

e. 7,778 $ 4,080 , $ 4,400