An asset with a cost of $28,000 was sold for $13,000 cash. Accumulated depreciation on the asset totaled $17,000. The amount of the gain or loss recognized for the sale is:

Question

Quizplus · Accepted Answer

The book value of the asset is calculated as the cost minus accumulated depreciation, which is $28,000 - $17,000 = $11,000. Since the asset was sold for $13,000, which is $2,000 more than its book value, a gain of $2,000 is recognized.

An Asset with a Cost of $28,000 Was Sold for $13,000