GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 28

$3,500
$2,625
$875

Question 16. Question :
On December 31, 2010, Stable
Company sold a piece of equipment that was purchased on
January 1, 2005. The equipment originally cost $820,000 and
has an estimated useful life of eight years. Stable uses the
straight-line method of depreciation. What is the gain/loss on the
sale of equipment that Stable will recognize if the equipment
was sold for $230,000?
$230,000 Gain
$25,000 Loss
$25,000 Gain
$73,750 Gain
. $0; no gain or loss

Question 17. Question :
Cardco Inc. has an annual
accounting period which ends on December 31. During the
current year a depreciable asset which cost $42,000 was
purchased on September 2. The asset has a $4,000 estimated