Multiple Choice
James Company has an asset that cost $5,000 and currently has accumulated depreciation of $2,000. Suppose the firm sold the asset for $2,500 and is subject to a 30% income tax rate.
The loss on disposal would be:
A) $350.
B) $500.
C) $650.
D) $2,500.
E) None, because the transaction produced a gain.
Correct Answer:
Verified
Correct Answer:
Verified
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