A company had a tractor destroyed by fire. The tractor originally cost $131,000 with accumulated depreciation of $65,400. The proceeds from the insurance company were $26,000. The company should recognize: A.
A gain of $65,600.
B. A loss of $39,600.
C. A gain of $26,000.
D. A loss of $65,600.
E. A gain of $39,600.