Sears Corporation, Which Has a Calendar Year Accounting Period, Purchased

Sears Corporation, which has a calendar year accounting period, purchased a new machine for $40,000 on April 1, 2003. At that time Sears expected to use the machine for nine years and then sell it for $4,000. The machine was sold for $22,000 on Sept. 30, 2008. Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be

A) $4,000.
B) $3,000.
C) $2,000.
D) $0.