An Asset's Book Value Is $36,000 on January 1,Year 6

question 116

Multiple Choice

An asset's book value is $36,000 on January 1,Year 6.The asset is being depreciated $500 per month using the straight-line method.Assuming the asset is sold on July 1,Year 7 for $25,000,the company should record:

• A)Neither a gain or loss is recognized on this type of transaction.
• B)A gain on sale of $2,000.
• C)A loss on sale of $1,000.
• D)A gain on sale of $1,000.
• E)A loss on sale of $2,000.

---

Definitions:

Health Care Spending

The total amount of money spent by individuals, insurance companies, and governments on health care services and products.

Social Network

A network of social interactions and personal relationships, or a platform on the internet that facilitates these interactions.

Emotional Benefit

The positive psychological effect or satisfaction gained by a person from a product, service, or experience.

Social Disadvantage

A condition or circumstance that places individuals or groups at a disadvantage in society, often rooted in factors like poverty, discrimination, or lack of access to resources.