An asset with a cost of $67,000 and accumulated depreciation of $43,000 is sold for $25,000, the company should record:
A)A loss on sale of $24,000.
B)A gain on sale of $52,000.
C)Neither a gain nor a loss is recognized on this transaction.
D)A loss on sale of $1,000.
E)A gain on sale of $1,000.

Question

Quizplus · Accepted Answer

The book value of the asset is $24,000 ($67,000 - $43,000). Selling it for $25,000 results in a gain of $1,000.

An Asset with a Cost of $67,000 and Accumulated Depreciation