On January 1, 2017, Company B purchased a vehicle for use in the business at a cost
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Question:
On January 1, 2017, Company B purchased a vehicle for use in the business at a cost of $22,000. The vehicle has a 4-year useful life with an expected residual value of $2,000.
The company has a December 31 year-end and uses straight-line depreciation method. On January 1, 2019, the company sold the vehicle for cash proceeds of $8,000.
What gain or loss did Company B report on its 2019 income statement?
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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