On September 1,2012,Algernon Company Sold a Truck for $15,000 Cash

question 143

Multiple Choice

On September 1,2012,Algernon Company sold a truck for $15,000 cash.The truck was originally purchased for $40,000,had an estimated salvage value of $4,000 and an estimated life of 6 years.Algernon had recorded depreciation of $30,000 through the end of 2011 using Straight-Line.First,Algernon had to update the depreciation prior to sale.Then Algernon recorded the sale transaction.What was the effect of that transaction on the net income of the company?

• A) No gain or loss
• B) Gain of $9,000
• C) Gain of $15,000
• D) Loss of $9,000

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A country located in the southern portion of North America, known for its rich culture, history, and diverse landscapes.

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