The following account totals appear in the general ledger of the Boston Company:

Equipment: $12,000

Accumulated Depreciation: $4,500

If the equipment is sold to an outside party for $5,500, what amount of gain (loss) will the Boston Company record on the disposal of the equipment?

a) $ 2,000 loss

b) $1,000 gain

c) $2,500 gain

d) $4,000 gain