Return to Major Link's original purchase date of August 1, 2020. Assume that Major Link uses the straight-line method of depreciation and sells the equipment for \(\$ 11,500\) on August 1, 2024. Based on the result of the sale of the equipment, what gain (or loss) will Major Link realize?

a. \(\$ 4,500\)

b. \(\$ 13,500\)

c. \(\$(9,000)\)

d. \(\$ 0\)

On August 1, 2020, Major Link Inc. purchased a new piece of equipment that cost \(\$ 25,000\). The estimated useful life is five years, and estimated residual value is \(\$ 2,500\).