Which in recording the transaction

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Question 1: On January 1, 2018, Dunbar Echo Co. sells a machine for $26,400. The machine was originally purchased on January 1, 2016 for $48,200. The machine was estimated to have a useful life of 5 years and a residual value of $0. Dunbar Echo uses straight-line depreciation. In recording this transaction:

Multiple Choice

Option 1: a loss of $2,520 would be recorded.

Option 2: a gain of $2,520 would be recorded.

Option 3: a loss of $21,800 would be recorded.

Option 4: a gain of $26,400 would be recorded.

Reference no: EM132604368

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