An asset's book value is $$25,200$ on January $1,$ Year $6.$ The asset is being depreciated $$350$ per month using the straight$-$line method. Assuming the asset is sold on July $1,$ Year $7$ for $$17,900,$

the company should record:

Multiple Choice

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

A gain on sale of $$1,000.$

A loss on sale of $$500.$

A gain on sale of $$500.$

A loss on sale of $$1,000.$