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An Asset Was Purchased for $12,000

Question 86

Multiple Choice

An asset was purchased for $12,000.The asset's estimated useful life was 5 years,and its residual value was $2,000.Straight-line depreciation was used.
-How much gain or loss is reported if the asset is sold for $400 at the end of the fifth year?


A) $1,600 gain
B) $500 gain
C) No gain or loss
D) $1,600 loss

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