Krantz Company's Delivery Truck, Which Originally Cost $28,000, Was Destroyed

Krantz 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.