On February 1, 2008, James Co., which uses straight-line depreciation, purchased equipment for $88,000 with a useful life of 12 years and $4,000 salvage value. On February 1, 2012, the equipment was sold for $56,000. Which of the following would James recognize as a result of this disposition?
A) $7,000 loss
B) $4,000 loss
C) $4,000 gain
D) No gain or loss
Correct Answer:
Verified
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