Depreciated at an annual rate of straight-line method

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Reference no: EM131206417

An asset's book value is $19,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,000, the company should record:

A loss on sale of $3,000.

Neither a gain nor a loss is recognized on this type of transaction.

A gain on sale of $3,000.

A loss on sale of $3,000.

Reference no: EM131206417

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