An asset's book value is $18,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record:
A. Neither a gain nor a loss is recognized on this transaction.
B. A loss on sale of $12,000.
C. A gain on sale of $12,000.
D. A gain on sale of $3,000.
E. A loss on sale of $3,000.
Answer: E
You might also like to view...
A contingent liability is recorded if it is probable and can be reasonably estimated
a. True b. False Indicate whether the statement is true or false
What is the most important way to fight identity theft?
a. By shredding mail that contains detailed information. b. By taking extra care of the personal valuable information. c. By using strong passwords and changing them often. d. By preventing it from happening in the first place.
Answer the following related to behavioral research: a. What is the main concern of behavioral research? b. How does behavioral research differ from the decision-model approach? c. What are some of the findings of this research?
What will be an ideal response?
Which of the following arguments has been made by critics of the sociological school of law?
A) Sociology is not relevant to law, and so its views can be ignored. B) The sociological school has proposed a view of law that is rigid and uncompromising. C) The sociological school places too great an emphasis on quantitative data rather than experienced gut reactions. D) The sociological school makes the law unpredictable, since community standards change over time.