The RM of Bismarck is looking to sell a piece of equipment in 2010 that they purchased in 2004 for $54,321. When the purchase was completed in 2004, the RM administrator set the assets useful life at 10 years and a residual value of $5,000.

The RM of Bismarcks TCA policy states that they municipality uses straight line depreciation to calculate their annual amortization charge.

If the RM anticipates a sale price of $30,947 in 2010, what is the anticipated gain or loss on the sale of the asset?

Select one:

a. Gain of $6,218.60

b. Loss of $6,218.60

c. Loss of $9,218.60

d. Gain of $9,218.60