An Asset Which Costs $97,600 and Has Accumulated Depreciation of $82,000

question 70

Multiple Choice

An asset which costs $97,600 and has accumulated depreciation of $82,000 is sold for $18,000.What amount of gain or loss will be recognized when the asset is sold?

• A)A gain of $15,600.
• B)A loss of $15,600.
• C)A loss of $2,400.
• D)A gain of $2,400.

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Definitions:

Investment Accounts

Accounts held at a financial institution that hold investments such as stocks, bonds, mutual funds, and ETFs, often for purposes of earning a return.

Trading Debt Securities

Securities bought and held primarily for sale in the near term to generate income on short-term price differences.

Fair Value

The estimated price at which an asset or liability could be traded in a fair transaction between willing parties.

Held-to-maturity Securities

Financial instruments that a company has the intent and ability to hold until they mature.