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

---

Definitions:

Equal Protection

A constitutional principle in many democratic countries that mandates all individuals be treated equally under the law.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

State Action

Activities or actions taken by government bodies or officials, covered by legal and constitutional protections.

Property Right

Legal rights to possess, use, and dispose of assets or properties.