On July 1, year 4, one of Rudd Co.ís delivery vans was destroyed
in an accident. On that date, the vanís carrying value was
$2,500. On July 15, year 4, Rudd received and recorded a $700
invoice for a new engine installed in the van in May year 4, and
another $500 invoice for various repairs. In August, Rudd received
$3,500 under its insurance policy on the van, which it plans
to use to replace the van. What amount should Rudd report as
gain (loss) on disposal of the van in its year 4 income statement?