Davidson Company sold one of its worn-out delivery trucks on December 31, 2019. The truck was purchased
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Davidson Company sold one of its worn-out delivery trucks on December 31, 2019. The truck was purchased on January 1, 2016, for \(\$ 50,000\) and was depreciated on a straight-line basis over a fiveyear life. There was no salvage value associated with the truck. If the truck was sold for \(\$ 14,000\), what was the amount of gain or loss recorded at the time of the sale?
a. \(\$ 4,000\) loss
b. \(\$ 14,000\) gain
c. \(\$ 4,000\) gain
d. \(\$ 6,000\) loss
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