Rhoundakona Corporation Bought Property, Plant, and Equipment on January 1

Rhoundakona Corporation bought property, plant, and equipment on January 1, 2017, at a cost of $35,000. Estimated residual value is $5,000 and the estimated useful life is 8 years. The company
Uses straight-line depreciation. On January 1, 2020, Rhoundakona's management sells the asset for
$25,000. The gain or loss on disposal is:

A) $1,250 gain
B) $10,000 loss
C) $1,250 loss
D) $25,000 gain