Question - Hill Company purchased a machine for $11,000 on January 1, 2016. The machine has been depreciated using the straight-line method over a 5-year life with a $1,400 residual value. Hill sold the machine on January 1, 2018, for $8,400. The book value as of December 31, 2017 is $7,160. What gain or loss should Hill record on the sale?
A. Loss, $1 240
B. Gain, $1,200
C. Gain, $1,240
D. Loss, $680