ACME. Inc.. uses straight-line depreciation for all of its depreciable assets. ACME sold a used piece of machinery on December 3 1 . 2008. that it purchased on January 1 . 2007. for $ 10.000. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 31. 2007. If the sales price of the used machine was $7,500, the resulting gain or loss upon the sale was which of the following amounts ?

a. loss of $500

d. gain of $1,500

b. gain of $500

e. No gain or loss upon the sale

c. loss of $1,500

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