An asset's book value is $$21,600$ on January $1,$ Year $6.$ The asset is being depreciated $$300$ per month using the straight$-$line method.

Assuming the asset is sold on July $1,$ Year $7$ for $$15,700,$ the company should record:

Multiple Choice

Neither a gain or loss is recognized on this type of transaction.

A gain on sale of $$500.$

A loss on sale of $$250.$

A gain on sale of $$250.$

A loss on sale of $$500.$An asset's book value is $$21,600$ on January $1,$ Year $6.$ The asset is being depreciated $$300$ per month using the straight$-$line method. Assuming the asset is sold on July $1,$ Year $7$ for $$14,700,$ the company should record: