An Asset Was Purchased for $12,000

question 120

Multiple Choice

An asset was purchased for $12,000.The asset's estimated useful life was 5 years,and its residual value was $2,000.Straight-line depreciation was used.
-How much gain or loss is reported if the asset is sold for $4,500 at the end of the third year?

• A) $1,500 gain
• B) $2,000 loss
• C) No gain or loss
• D) $1,500 loss

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Definitions:

Contrast Paragraph

A section of text that highlights the differences between two or more subjects, ideas, or objects.

Points Of Contrast

Specific aspects or elements that are used to highlight differences between two or more subjects in a comparison.

Transitional Expression

Transitional expressions are words or phrases used to connect ideas together within and between sentences, enhancing the flow of writing.

Black Bass

A common term referring to several species of North American freshwater fish in the sunfish family.