Multiple Choice
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) A loss on sale of $12,000.
B) A gain on sale of $12,000.
C) Neither a gain nor a loss is recognized on this transaction.
D) A gain on sale of $3,000.
E) A loss on sale of $3,000.
Correct Answer:
Verified
Correct Answer:
Verified
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