An asset that costs $97,600 and has accumulated depreciation of $82,000 is sold for $18,000.What amount of gain or loss will be recognized when the asset is sold?
A)A gain of $15,600.
B)A loss of $15,600.
C)A loss of $2,400.
D)A gain of $2,400.

Question

Quizplus · Accepted Answer

The book value of the asset is calculated as the cost minus accumulated depreciation, which is $97,600 - $82,000 = $15,600. Since the asset is sold for $18,000, which is $2,400 more than its book value, a gain of $2,400 is recognized.

An Asset That Costs $97,600 and Has Accumulated Depreciation of $82,000