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Carter 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? a. $3,400 loss. b. $1,900 loss. c. $6,700 gain. d. $11,500 gain.

Carter 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? a. $3,400 loss. b. $1,900 loss. c. $6,700 gain. d. $11,500 gain.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carter 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? a. $3,400 loss. b. $1,900 loss. c. $6,700 gain. d. $11,500 gain.
Transcribed Image Text:Carter 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? a. $3,400 loss. b. $1,900 loss. c. $6,700 gain. d. $11,500 gain.
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