A Piece of Equipment Purchased on January 1, 2011, for $16,000

question 42

Essay

A piece of equipment purchased on January 1, 2011, for $16,000 was estimated to have a residual value of
$4,000 at the end of its three-year useful life. If the equipment was depreciated using the straight-line method and disposed of on December 31, 2012, for $5,000, what amount of gain or loss would be reported on the income statement?

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Definitions:

Biological Cause

An underlying physical or physiological reason for a condition, disease, or behavior rooted in genetics, biochemistry, or anatomy.

Frotteurism

A paraphilic interest involving the act of touching or rubbing against a non-consenting person for sexual arousal.

Resolution Phase

The fourth phase in the sexual response cycle, characterized by relaxation and a decline in arousal following orgasm.

Sexual Response Cycle

The general sequence of behavior and feelings that occurs during sexual activity, consisting of desire, excitement, orgasm, and resolution.