20) A task station that originally cost $8,000 has no estimated salvage value and was depreciated...
20) A task station that originally cost $8,000 has no estimated salvage value and was depreciated at the rate of 20% per year (straight-line depreciation). At the end of the second year, it was sold for $4,000 cash. The transaction would result in a:
A) loss of $400.
B) gain of $400.
C) loss of $800.
D) gain of $800.
Homework Answers
| Sale Proceeds | 4000 | |
| Less: | ||
| Original Cost | 8000 | |
| Less: Depreciation accumulated | 8000*20%*2 = 3200 | 4800 |
| So, Gain/-Loss | -800 |
Hence Option C is correct.
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20) A task station that originally cost $8,000 has no
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