Multiple Choice
An asset was purchased for $24,000. The asset's estimated useful life was 5 years, and its residual value was $4,000. The straight-line method of depreciation was used. Calculate the gain or loss on sale if the asset is sold for $18,000 at the end of the first year.
A) $1,000 gain
B) $2,000 loss
C) no gain or no loss
D) $2,000 gain
Correct Answer:
Verified
Correct Answer:
Verified
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