cember 31, 2021, Jaco uld Jacob Inc. record o
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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![31. On January 1, 2019, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. On December 31, 2021, Jacob Inc. sold the truck for
$30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2021?
A.
B.
C.
D.
Gain, $22,000.
Loss, $18,000.
Gain, $5,000.
Loss, $3,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee9abd16-de5a-473f-9ef0-b39753a1a4c9%2F6f5a4c4c-81b8-4bd4-bb14-7dc1caa21111%2Fas7tcvg_processed.png&w=3840&q=75)
Transcribed Image Text:31. On January 1, 2019, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. On December 31, 2021, Jacob Inc. sold the truck for
$30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2021?
A.
B.
C.
D.
Gain, $22,000.
Loss, $18,000.
Gain, $5,000.
Loss, $3,000.
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