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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