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If a fixed asset with an original cost of $20,000 and accumulated depreciation of $5,000...

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Question

Accounting

If a fixed asset with an original cost of $20,000 and accumulated depreciation of $5,000 is sold for $25,000, the company must

a. recognize a gain on the income statement of $25,000

b. recognize a gain on the income statement of $10,000

c. recognize a loss on the income statement of $20,000

d. recognize a loss on the income statement of $5,000

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