On January 1, 2021, 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, 2022, the truck was exchanged for a new truck valued at $60,000. Jacob received a trade allowance of $35,000 on the exchange with the remaining $25,000 paid in cash. What amount of gain or loss should Jacob Inc. record on December 31, 2022?

A. Loss, $18,000.
B. Loss, $3,000.
C. Loss, $38,000.
D. Gain, $5,000.


Answer: B

Business

You might also like to view...

In expansions, according to the liquidity-preference model, the increase in ____ leads to ____ in the equilibrium nominal interest rate.

A. money supply; an increase B. money supply; a decline C. money demand; a decline D. money demand; an increase

Business

________ writes, "The narcissistic person has built an invisible wall around himself. He is everything, the world is nothing. Or rather: He is the world."

A. Sigmund Freud B. Steve Jobs C. Erich Fromm D. Henry Ford

Business

Thomas Schatz has five questions to ask his reader in a routine information-request message. What is the best way to present these questions?

A) ?As a separate enclosure B) ?In a bulleted or numbered list in the body of his message C) ?In paragraph form in the body of his message D) ?In a follow-up e-mail

Business

Using a standard deck of 52 cards, explain why the situation of drawing a 7 and a club is not collectively exhaustive

What will be an ideal response?

Business