A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?
A) $2,000 loss
B) $1,500 loss
C) $3,500 gain
D) $2,000 gain

Question

Quizplus · Accepted Answer

The book value of the asset is calculated as the cost minus accumulated depreciation, which is $30,000 - $28,500 = $1,500. Selling the asset for $3,500 results in a gain of $3,500 - $1,500 = $2,000.

A Fixed Asset with a Cost of $30,000 and Accumulated