On January 1,2018,Jacob Inc.purchased a commercial truck for $48,000 and uses the straight-line depreciation method.The truck has a useful life of eight years and an estimated residual value of $8,000.Assume the truck was totaled in an accident on December 31,2019.What amount of gain or loss should Jacob Inc.record on December 31,2019?
A) Gain,$5,000.
B) Loss,$18,000.
C) Loss,$38,000.
Correct Answer:
Verified
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