On July 1, 2012, Happy Hound Kennels Inc

On July 1, 2012, Happy Hound Kennels Inc. sells equipment for $20,000. The equipment originally cost $80,000, had an estimated 5-year life and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $49,000 on January 1, 2012, using the straight-line method. The gain or loss on disposal is

A) $4,000 gain.
B) $4,000 loss.
C) $11,000 loss.
D) $11,000 gain.