Sears corporation, which has a calendar year accounting period, purchased a new machine for $40,000 on April 1, 2007. At that time Sears expected to use the machine for ten years and then sell it for $10,000. The machine was sold for $24,500 on September 30, 2012. Assuming straight-line depreciation, the gain to be recognized at the time of sale would be

a) $3,000
b) $2,000
c) $1,000
d) $0
e) None of the above