An Asset Was Purchased for $12,000

question 27

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 fourth year?

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

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Definitions:

Truth-in-Sentencing Laws

Legislation requiring convicted individuals to serve a substantial portion of their sentence before being eligible for parole.

Violent Crimes

Criminal acts that involve force or the threat of force against others, such as murder, rape, robbery, and assault.

Federal Prison

A correctional facility operated and maintained by the federal government for individuals convicted of federal crimes.

Prisoners Aged

Refers to incarcerated individuals who are elderly, focusing on the challenges and conditions unique to this demographic.