A machine was purchased at a cost of $70,000. The equipment had an estimated useful life of

Question:

A machine was purchased at a cost of $70,000. The equipment had an estimated useful life of 8 years and had a residual value of $6,000. Assuming the equipment was sold at the end of year 6 for $14,000 determine the gain or loss on the sale of the equipment.
(Assume the straight-line depreciation method.)
a) A gain of $14,000
b) A loss of $14,000
c) A gain of $8,000
d) A loss of $8,000