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:

Temperament

The combination of mental, physical, and emotional traits of a person; natural predisposition, which is often evident from infancy.

Testosterone

The most important of the male sex hormones. Both males and females have it, but the additional testosterone in males stimulates the growth of the male sex organs in the fetus and the development of the male sex characteristics during puberty.

Assertive

Characterized by confidence and self-assurance in expressing opinions, desires, or boundaries without being aggressive.

Empathic

Having the ability to understand and share the feelings of another from their perspective.