On January 1, Year 1, Raven Limo Service, Incorporated paid $74,000 cash to purchase a limousine. The limo was expected to have a five-year useful life and a $14,000 salvage value. On January 1, Year 3 the limo was sold for $46,000 cash. Assuming Raven uses straight-line depreciation, the Company would recognize a
A)$4,000 loss
B)$4,000 gain
C)$22,000 loss
D)$22,000 gain

Question

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The Answer of On January 1, Year 1, Raven Limo Service, Incorporated paid $74,000 cash to purchase a limousine. The limo was expected to have a five-year useful life and a $14,000 salvage value. On January 1, Year 3 the limo was sold for $46,000 cash. Assuming Raven uses straight-line depreciation, the Company would recognize a
A)$4,000 loss
B)$4,000 gain
C)$22,000 loss
D)$22,000 gain

On January 1, Year 1, Raven Limo Service, Incorporated Paid