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Excelsior Inc. began the year with capital assets of $200,000 and accumulated amortization of $100,000. During the year, capital assets were purchased for $50,000 and capital assets were sold for proceeds of $1,000. Amortization expense for the year was $20,000. At the end of the year, Excelsior had capital assets of $242,000 and accumulated amortization of $115,000. What was the gain/loss on the disposal of capital assets? Multiple Choice O O $1,000 gain $2,000 loss None of the other alternatives are correct $5,000 loss $8,000 gain

Excelsior Inc. began the year with capital assets of $200,000 and accumulated amortization of $100,000. During the year, capital assets were purchased for $50,000 and capital assets were sold for proceeds of $1,000. Amortization expense for the year was $20,000. At the end of the year, Excelsior had capital assets of $242,000 and accumulated amortization of $115,000. What was the gain/loss on the disposal of capital assets? Multiple Choice O O $1,000 gain $2,000 loss None of the other alternatives are correct $5,000 loss $8,000 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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Excelsior Inc. began the year with capital assets of $200,000 and accumulated amortization of $100,000. During the year, capital assets were purchased for $50,000 and capital assets were sold for proceeds of $1,000. Amortization expense for the year was $20,000. At the end of the year, Excelsior had capital assets of $242,000 and accumulated amortization of $115,000. What was the gain/loss on the disposal of capital assets? Multiple Choice $1,000 gain $2,000 loss None of the other alternatives are correct $5,000 loss $8,000 gain
Transcribed Image Text:Excelsior Inc. began the year with capital assets of $200,000 and accumulated amortization of $100,000. During the year, capital assets were purchased for $50,000 and capital assets were sold for proceeds of $1,000. Amortization expense for the year was $20,000. At the end of the year, Excelsior had capital assets of $242,000 and accumulated amortization of $115,000. What was the gain/loss on the disposal of capital assets? Multiple Choice $1,000 gain $2,000 loss None of the other alternatives are correct $5,000 loss $8,000 gain
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