On January 1, 2011, Heather Locks Corporation Purchased Drilling Equipment

On January 1, 2011, Heather Locks Corporation purchased drilling equipment for $11,500. The equipment has an estimated useful life of 4 years and a salvage value of $200. Given this information, if Heather uses the double-declining-balance method of depreciation and sells the equipment on December 31, 2012, for $3,000, it will have a

A) $2,750 loss
B) $1,800 loss
C) $1,562 gain
D) $125 gain