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

---

Definitions:

Evaluation

The process of assessing or judging the value, importance, or effectiveness of something.

Summative Evaluation

The assessment of the outcome or impact of an intervention after it has been implemented.

Quantitative Data

Numerical information that can be measured and quantified, allowing for statistical analysis and mathematical calculations.

Impact Evaluation

The assessment of the changes that can be attributed to a particular intervention, such as a project, program, or policy.