An equipment's book value on June 30, Year 4 is $10,000. The equipment was depreciated using the straight-line method at $2,000 per year. If the equipment is sold for $12,500 on that date, what should the company record? a. A loss on sale of $2,500 b. A gain on sale of $2,500 c. No gain or loss d. A gain on sale of $3,000

An equipment's book value on June 30, Year 4 is $10,000. The equipment was depreciated using the straight-line method at $2,000 per year. If the equipment is sold for $12,500 on that date, what should the company record? a. A loss on sale of $2,500 b. A gain on sale of $2,500 c. No gain or loss d. A gain on sale of $3,000

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 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...

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Can you please give true answer?
An asset's book value is $19,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,000, the company should record: a. A loss on sale of $3,000. b. Neither a gain nor a loss is recognized in this type of transaction. c. A gain on sale of $3,000. d. A gain on sale of $3,000. e. A loss on sale of $3,000.
An asset's book value is $15,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 using the straight-line method. Assuming the asset is sold on December 31, Year 5 for $12,000, the company should record: A. A loss on sale of $2,000. B. Neither a gain nor a loss is recognized in this type of transaction. C. A gain on sale of $2,000. D. A gain on sale of $3,000. E. A loss on sale of $3,000.