An Asset That Costs $18,800 and Has Accumulated Depreciation of $6,000

question 28

Multiple Choice

An asset that costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600.What amount of gain or loss will be recognized when the asset is sold?

• A)A gain of $1,200.
• B)A loss of $1,200.
• C)A loss of $7,200.
• D)A gain of $7,200.

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Definitions:

Plan of Merger

A detailed proposal outlining the terms, conditions, and process of merging one company with another.

Sufficient Information

The adequate amount of data or facts necessary to facilitate decision-making or to fulfill a specific requirement.

Proposed Combination

A suggest plan or strategy for merging two or more entities or ideas into a single unit.

Shareholders

Owners of shares in a corporation, giving them certain rights such as voting on corporate matters and receiving dividends based on the company's performance.