Anderson Equipment Company disposed of an asset at the end of the ninth year of its estimated life for $15,000 cash. The asset's life was originally estimated to be 12 years. The original cost was $60,000 with an estimated residual value of $6,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal? A) $2,500 loss B) $1,500 loss C) $3,000 gain D) $15,000 gain

Anderson Equipment Company disposed of an asset at the end of the ninth year of its estimated life for $15,000 cash. The asset's life was originally estimated to be 12 years. The original cost was $60,000 with an estimated residual value of $6,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal? A) $2,500 loss B) $1,500 loss C) $3,000 gain D) $15,000 gain

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 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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Carter Company disposed of an asset at the end of the eighth year of its estimated life for $16,000 cash. The asset's life was originally estimated to be 10 years. The original cost was $85,000 with an estimated residual value of $8,500. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?
What was the gain or loss on the disposal?
What was the gain or loss on the disposal
D.C Company disposed of an asset at the end of the eighth year of its estimated life for $11,500 cash. The asset's life was originally estimated to be 10 years. The original cost was $53,300 with an estimated residual value of $5,300. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?