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An asset was acquired on September 30, 2018, for $100,000 with an estimated 5-year life and...

An asset was acquired on September 30, 2018, for $100,000 with an estimated 5-year life and $20,000 residual value. The company uses double-declining-depreciation. Calculate the gain or loss if the asset was sold on December 31, 2019, for $50,000. Partial-year depreciation is to be calculated.

$1,200 gain.

$4,000 loss.

$14,000 gain.

$16,000 loss.
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Answer $ 4000 Loss

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