On July 1, 2015, Hale Kennels Sells Equipment for $220,000

On July 1, 2015, Hale Kennels sells equipment for $220,000. The equipment originally cost $600,000, had an estimated 5-year life and an expected salvage value of $100,000. The accumulated depreciation account had a balance of $350,000 on January 1, 2015, using the straight-line method. The gain or loss on disposal is

A) $30,000 gain.
B) $20,000 loss.
C) $30,000 loss.
D) $20,000 gain.