An Asset Was Acquired on September 30, 2018, for $100,000

Multiple Choice

An asset was acquired on September 30, 2018, for $100,000 with an estimated 5-year life and $20,000 residual value. The company uses double-declining-depreciation. Calculate the gain or loss if the asset was sold on December 31, 2019, for $50,000. Partial-year depreciation is to be calculated.

A) $1,200 gain.
B) $14,000 gain.
C) $16,000 loss.
D) $4,000 loss.