Person Dot Company sold a delivery truck on July 1, 2005, for $5,000. The original cost of

Question:

Person Dot Company sold a delivery truck on July 1, 2005, for $5,000. The original cost of the truck was $30,000. Each December 31, Parson s recognized $4,500 of depreciation using the straight-line method. On January 1, 2005, the accumulated depreciation was $22,500. The value for the truck is $3,000 on July 1. Compute Parson s gain or loss on the sale of the truck.
1. $2,000 gain
2. $2,500 loss.
3. $250 loss.
4. $250 gain.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....