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 $20,000 in 2010, what is the anticipated gain or loss on the sale of the asset?

Select one:

a.

Loss of $1,728.40

b.

Loss of $4,728.40

c.

Gain of $4,728.40

d.

Gain of $1,728.40