A fixed asset with a cost of $35,000 and accumulated depreciation of $32,000 is sold for $5,500. What is the amount of the gain or loss on disposal of the fixed asset? a) $2,500 gain b) $3,000 gain c) $3,000 loss d) $2,500 loss

A fixed asset with a cost of $35,000 and accumulated depreciation of $32,000 is sold for $5,500. What is the amount of the gain or loss on disposal of the fixed asset? a) $2,500 gain b) $3,000 gain c) $3,000 loss d) $2,500 loss

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 6MC: At the end of the expected useful life of a depreciable asset with an estimated 15% residual value,...

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Question

General accounting

A fixed asset with a cost of $35,000 and accumulated
depreciation of $32,000 is sold for $5,500. What is the
amount of the gain or loss on disposal of the fixed
asset?
a) $2,500 gain
b) $3,000 gain
c) $3,000 loss
d) $2,500 loss

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