Harrison Company purchased a machine for $11,800 on January 1, 2016. The machine has been depreciated using the straight-line method over a four-year...

Harrison Company purchased a machine for $11,800 on January 1, 2016.  The machine has been depreciated using the straight-line method over a four-year life with a $1,600 residual value.  Hamilton sold the machine on January 1,2018, for $8,000.  The book value as of December 31, 2017 is $6,700.  What gain or loss should Hamilton record on the sale?

A. Loss, $1,300

B. Loss, $1,250

C. Gain, $2,200

D. Gain, $1,300