On 30 April 2013, Tilton Products Purchased Machinery for $88,000

On 30 April 2013, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value.
-Refer to the above data. In the year 2020, Tilton Products sells this machinery for $4,500. At the date of sale, the machinery had been depreciated by Tilton Products to its estimated residual value of $8,000. This sale results in:

A) A $3,500 loss in both the company's financial statements and income tax return.
B) No gain or loss in either the financial statements or income tax return.
C) A $3,500 loss in the financial statements, a $3,500 gain in the income tax return.
D) A $3,500 loss in the financial statements, but no gain or loss in the income tax return.