An Asset Was Purchased for $12,000

question 10

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 $400 at the end of the fifth year?

• A) $1,600 gain
• B) $500 gain
• C) No gain or loss
• D) $1,600 loss

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Definitions:

Cognitive Therapists

Mental health professionals who use approaches designed to change dysfunctional beliefs and thought patterns, typically to treat depression, anxiety, and other psychological disorders.

Construct System

A cognitive structure used by a person to categorize and interpret experiences, often influencing their perception and behavior.

Psychological Health

An individual's overall state of mental, emotional, and psychological well-being.

Romantic Relationship

A type of interpersonal relationship that involves emotional and/or physical intimacy, typically characterized by love, commitment, and attraction.