An Asset Was Purchased for $12,000

question 3

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 $9,000 at the end of the second year?

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