An Asset Which Costs $14,400 and Has Accumulated Depreciation of $8,000

question 15

Multiple Choice

An asset which costs $14,400 and has accumulated depreciation of $8,000 is sold for $5,600.What amount of gain or loss will be recognized when the asset is sold?

• A)A gain of $800.
• B)A loss of $800.
• C)A loss of $2,400.
• D)A gain of $2,400.

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Definitions:

Current Liabilities

Current Liabilities are a company's debts or obligations that are due to be paid within one year and are listed on the company’s balance sheet. They typically include accounts payable, short-term loans, and other accrued liabilities.

Principal Repaid

The amount of loan or debt's original borrowing that has been or is being paid back, excluding interest payments.

Long-Term Notes

Debt securities or loans with maturities extending beyond one year, typically used for long-term financing needs.

Gift Card Expense

The cost recognized by a company when a gift card is redeemed, reflecting the reduction in liability and recognition of revenue or expense.