A Fixed Asset with a Cost of $30,000 and Accumulated

question 48

Multiple Choice

A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?

• A) $2,000 loss
• B) $1,500 loss
• C) $3,500 gain
• D) $2,000 gain

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Definitions:

Downstream Division

The section of a company involved with the processing, marketing, and sale of products derived from raw materials.

Profit Centers

Segments within a business that are directly responsible for generating profits through their activities and performance.

Divisional Profit

The earnings generated by a distinct operational unit or division within a larger organization, often assessed to evaluate the unit's financial performance.

Coordination

The organization and alignment of activities, tasks, and resources to achieve a specific goal or objective efficiently.