Vorst depreciates Asset C by the straight-line method. On June 30, 2020, Vorst sold Asset C for $28,000 cash. How much gain (loss) should Vorst record in 2020 on the disposal of Asset C?
a. $2,800
b. ($2,800)
c. ($5,600)
d. ($8,400)

The following information: Vorst Corporation’s schedule of depreciable assets at December 31, 2019, was as follows:

Vorst takes a full year’s depreciation expense in the year of an asset’s acquisition and no depreciation expense in the year of an asset’s disposition. The estimated useful life of each depreciable asset is 5 years.

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Accumulated Acquisition Residual Depreciation $ 64,000 Value Asset Cost Date $100,000 55,000 70,000 $225,000 $20,000 10,000 14,000 $44,000 2018 B 36,000 33,600 $133,600 2017 2017