On January 1,2014,Horton Inc.sells a machine for $23,000.The machine was originally purchased on January 1,2012 for $40,000.The machine was estimated to have a useful life of 5 years and a salvage value of $0.Horton uses straight-line depreciation.In recording this transaction:
A)a loss of $1,000 would be recorded.
B)a gain of $1,000 would be recorded.
C)a loss of $17,000 would be recorded.
D)a gain of $23,000 would be recordeD.

Question

On January 1,2014,Horton Inc.sells a machine for $23,000.The machine was originally purchased on January 1,2012 for $40,000.The machine was estimated to have a useful life of 5 years and a salvage value of $0.Horton uses straight-line depreciation.In recording this transaction:
A)a loss of $1,000 would be recorded. 
B)a gain of $1,000 would be recorded. 
C)a loss of $17,000 would be recorded. 
D)a gain of $23,000 would be recordeD.

Quizplus · Accepted Answer

The Answer of On January 1,2014,Horton Inc.sells a machine for $23,000.The machine was originally purchased on January 1,2012 for $40,000.The machine was estimated to have a useful life of 5 years and a salvage value of $0.Horton uses straight-line depreciation.In recording this transaction:
A)a loss of $1,000 would be recorded. 
B)a gain of $1,000 would be recorded. 
C)a loss of $17,000 would be recorded. 
D)a gain of $23,000 would be recordeD.