Wahoo Company purchased a machine at an original cost of $90,000 on January 2, Year 1. The estimated useful life of the machine is 10 years, and the machine has no salvage value. Wahoo uses the straight-line method to calculate depreciation. On July 1, Year 10, Wahoo sold the machine for $5,000. What is the amount of gain or loss on the disposal of the machine?

Group of answer choices

$500 loss

$4,500 loss

$500 gain

$4,500 gain