On Dec. 31, 2016: Sold a truck that was purchased at $25,000 on Jan. 1, 2013. (5 year life, salvage value $5,000, straight-line method). The truck...

On Dec. 31, 2016: Sold a truck that was purchased at $25,000 on Jan. 1, 2013. (5 year life, salvage value $5,000, straight-line method). The truck was sold for $5,000. No depreciation expense for 2016 has been recorded yet. After recording adjusting entries for depreciation expense for 2016, which of the following is correct?

Gain on disposal, $4,000

Loss on disposal, $4,000

Gain on disposal, $5,000

Loss on disposal, $5,000