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An assets book value is $19,200 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,200 on the st
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Answer #1

Computation of loss or gain on asset for the year 5 is:

Loss on asset for the year 5 = Sales value of asset - Book value of asset

= $16,200 - $19,200

= ($3,000)

Hence, the loss on asset for the year 5 is ($3,000), that is, the 2nd option is correct.

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