Question

Your new company car arrived and you decided to sell the old one. You originally paid...

Your new company car arrived and you decided to sell the old one. You originally paid $35,000 for it, assumed a salvage value of $3,000 and were depreciating it over a four year period.

If you received $7,000 for it at the end of year 3, what would you report on the income statement?

- a loss of $11,000

- a loss of $4,000

- a gain of $4,000

- a gain of $7,0000

- N/A

Using the same information as in the previous question, what would you report on the Income Statement if you received $7,000 if it was at the end of year 4?

- a loss of $11,000

- a loss of $4,000

- a gain of $4,000

- a gain of $7,000

- none of the above

none of the above

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