What is the gain or loss on the sale of an asset for $68,000 if the asset cost $185,000,depreciation expense deducted was $124,000,and there was a $19,000 major addition to the asset?
A)$0
B)$12,000 loss
C)$7,000 gain
D)$117,000 loss

Question

Quizplus · Accepted Answer

The book value of the asset is calculated as the original cost ($185,000) plus the major addition ($19,000) minus the depreciation ($124,000), which equals $80,000. The sale price is $68,000, resulting in a loss of $12,000 ($80,000 - $68,000).

What Is the Gain or Loss on the Sale of an Asset