Multiple Choice
A firm acquires a car for company business.The car costs $12,000, has a useful life of 5 years, and a salvage value of $2,000.The straight-line method of depreciation is used.What is the gain or loss on retirement if the car is sold for $5,000 after three years of use?
A) a gain of $200
B) a loss of $1,000
C) a gain of $1,000
D) a loss of $200
E) a loss of $800
Correct Answer:
Verified
Correct Answer:
Verified
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