31. On January 1, 2019, Jacob Inc. purchased a commercial truck for $48,000 and uses thestraight-line depreciation method. The truck has a useful life of eight years and anestimated residual value of $8,000. On December 31, 2021, Jacob Inc. sold the truck for$30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2021?A.B.C.D.Gain, $22,000.Loss, $18,000.Gain, $5,000.Loss, $3,000.

Answer : Depreciation per year = ($48,000 - $8000) / 8 = $5,000 Truck price : On 31 Dec.2019…

Answered: cember 31, 2021, Jaco uld Jacob Inc.…

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cember 31, 2021, Jaco uld Jacob Inc. record o

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

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Question

31. On January 1, 2019, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. On December 31, 2021, Jacob Inc. sold the truck for
$30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2021?
A.
B.
C.
D.
Gain, $22,000.
Loss, $18,000.
Gain, $5,000.
Loss, $3,000.

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