Berning Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years, or 10,000 hours of operation. The tractor was purchased on January 1, 2016 and was used 2,400 hours in 2016 and 2,100 hours in 2017. On January 1, 2018, the company decided to sell the tractor for $70,000. Berning uses the units-of-production method to account for the depreciation on the tractor.

Based on this information, the entry to record the sale of the tractor will show:

Select one:

A. A loss of $38,000

B. A gain of $70,000

C. A loss of $70,000

D. No gain or loss on the sale