An asset that cost $25,000 was sold for $8,000 cash. Accumulated depreciation on the asset was $16,000. The entry to record this transaction includes the recognition of

Question

Quizplus · Accepted Answer

The sale of the asset resulted in a loss of $1,000 ($25,000 - $16,000 - $8,000), which should be recognized in the entry to record the transaction. Neither a gain nor a profit was realized from the sale.

An Asset That Cost $25,000 Was Sold for $8,000 Cash