Mo Bounce Company's Delivery Truck, Which Originally Cost $ 28,000

Mo Bounce Company's delivery truck, which originally cost $ 28,000, was destroyed by fire. At the time of the fire, the balance of the accumulated depreciation account amounted to $ 19,000. The company received $ 16,000 reimbursement from its insurance company. The gain or loss as a result of the fire was

A) $ 12,000 loss.
B) $ 7,000 loss.
C) $ 12,000 gain.
D) $ 7,000 gain.