An Asset Was Purchased for $24,000

question 102

Multiple Choice

An asset was purchased for $24,000. The asset's estimated useful life was 5 years, and its residual value was $4,000. The straight-line method of depreciation was used. Calculate the gain or loss on sale if the asset is sold for $18,000 at the end of the first year.

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

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Definitions:

Character Strengths

Positive traits or qualities that are considered inherent in individuals and contribute to their overall well-being and ability to achieve personal goals.

Cultures

The shared beliefs, practices, norms, and values of a group of people that influence their behavior and way of life.

Personal Agency

Personal agency refers to the capacity of individuals to act independently and make their own free choices, shaping their own life path.

Effective Decisions

Choices made based on sound judgment that lead to desired outcomes efficiently.