A Firm Currently Occupies a Facility on Land It Also

A firm currently occupies a facility on land it also owns. The firm decides to raze this facility and in its place construct a new state-of-the-art complex. The gross cost to raze the old facility is $100,000 but the firm was able to sell some of the salvage material for $15,000. The book value of the old facility was $30,000 before demolition. What is the recognized loss on the old facility?

A) Zero; the loss is capitalized as part of the new complex
B) $85,000
C) $115,000
D) $130,000
E) $15,000