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Ryan, Inc., uses straight-line depreciation for all of its depreciable assets. Ryan sold a used piece of machinery on December 31, 2012, that it purchased on January, 2011, for $10,000. The asset had a five-year life, zero risidual value, and $2,000 accumulated depreciation as of december 31, 2011. If the sales price of the used machine was $6,500, the resulting gain or loss upon the sale was which of the following amounts?



A. Loss of $1,500
B. Gain of $1,500
C. Loss of $500
D. Gain of $500
E. No gain or loss upon the sale

This question is part of Accounting practice final
Asked by Mackenzie_Roman, Last updated: Feb 06, 2020

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1 Answer

John Smith

John Smith

Answered Oct 26, 2016

Gain of $500
 

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