Jeter Inc Acquired Machinery on January 1, 2004 at a Cost

Jeter Inc. acquired machinery on January 1, 2004 at a cost of $55,000. The machinery was depreciated over five years using the straight line method and a salvage value of $2,000. In 2010 the machinery was sold for $3,000. The income statement for 2010 will reflect which of the following:

A) Gain of $1,000
B) Gain of $3,000
C) Loss of $52,000
D) No gain or loss