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

question 58

Multiple Choice

An asset that 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:

Fewer Units

A scenario where a smaller quantity of a product is being produced, stocked, or sold, possibly due to lower demand or strategic decision-making.

Given Price

A specified cost at which a product or service is offered to consumers.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, within a specified time period.