A machine was purchased at a cost of $128,000. The equipment had an estimated useful life of 5 years and a residual valu

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A machine was purchased at a cost of $128,000. The equipment had
an estimated useful life of 5 years and a residual value of
$13,000. Assuming the equipment was sold at the end of Year 4 for
$18,000, determine the gain or loss on the sale of equipment.
(Assume the straight-line depreciation method.)
a.A loss of $18,000
b.A loss of $36,000
c.A gain of $18,000
d.A gain of $36,000