On July 1, 2014, Hale Kennels Sells Equipment for $110,000

On July 1, 2014, Hale Kennels sells equipment for $110,000. The equipment originally cost $300,000, had an estimated 5-year life and an expected residual value of $50,000. The accumulated depreciation account had a balance of $175,000 on January 1, 2014, using the straight-line method. The gain or loss on disposal is

A) $15,000 gain.
B) $10,000 loss.
C) $15,000 loss.
D) $10,000 gain.