cember 31, 2021, Jaco uld Jacob Inc. record o
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Problem:**
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. Gain, $22,000.
B. Loss, $18,000.
C. Gain, $5,000.
D. Loss, $3,000.
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