ACME, Inc., uses straight-line depreciation for all of its depreciable assets. ACME sold a used piece of machinery on December 3 1 , 2003, that it purchased on January 1 , 2002, for $ 1 0.000. The asset had a five-year life, zero residual value, and $2,000 accumulated depreciation as of December 3 1 , 2002. 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