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On January 1, 2019, Shadow, Inc

Question 3

Multiple Choice

On January 1, 2019, Shadow, Inc. purchased equipment for $54,000. Shadow uses straight-line depreciation and estimates a 10-year useful life and a $6,000 salvage value. On December 31, 2026, Shadow sells the equipment for $28,400.
In recording this sale, Shadow should reflect:


A) A $ 2,800 gain
B) A $ 3,200 gain
C) A $ 6,000 gain
D) A $12,800 gain

Correct Answer:

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