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:

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An online platform or service where individuals can connect, communicate, and share content with others in a virtual community.

Nodes

Nodes are points in a network where pathways intersect, serving as connection or redistribution points in various systems, such as telecommunications, computer networks, or social networks.

Maven

An expert or connoisseur, often referring to a person who has special knowledge or experience; used particularly in the context of marketing to describe influential figures.

Niche Market

A specialized segment within the marketplace characterized by a unique demand and specific consumer preferences, often less competitive than broader markets.