An Asset Was Purchased for $12,000

question 139

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 $3,000 at the end of the fifth year?

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

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Definitions:

NAACP

Stands for National Association for the Advancement of Colored People, an organization founded in 1909 to fight for civil rights and eliminate race-based discrimination.

Cold War Language

A set of jargon, phrases, and terminology that was developed during the Cold War to describe the ideologies, strategies, and weapons related to the conflict.

Desegregation

The process of ending the segregation of ethnic or racial groups, particularly in schools and public spaces.

American Legion

A U.S. war veterans' organization formed to support veterans, promote patriotism, and ensure national security.