An asset was acquired on August 1, 2021, for $42,000 with an estimated five-year life...
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Accounting
An asset was acquired on August 1, 2021, for $42,000 with an estimated five-year life and $2,100 residual value. The company uses straight-line depreciation. Calculate the gain or loss if the asset was sold on April 30, 2023, for $24,000. Partial-year depreciation is calculated based on the number of months the asset is in service.
Multiple Choice
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$5,985 gain.
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$4,035 loss.
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$11,970 gain.
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$7,980 loss.
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