At the Beginning of the Current Year, a Firm Purchased

question 103

Multiple Choice

At the beginning of the current year, a firm purchased an asset for $60,000 and estimates that it will have a useful life of six years and a salvage value of $6,000. The asset will be depreciated using the straight-line method. The asset was sold for $36.000 at the end of the fourth year of use. What is the amount of gain or loss recognized on the sale?

• A)$3,000 gain.
• B)$12,000 loss.
• C)$27,000 loss.
• D)$12,000 gain.

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Definitions:

Physical Characteristics

Physical characteristics refer to observable properties of matter such as color, texture, and phase (solid, liquid, gas).

Burying Bodies

A method of disposing human remains by placing them in a grave dug in the earth.

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Staten Island Soil

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