a-company-sells-a-vehicle-for-12000-the-vehicles-original-cost-was-20000-and-it-

Question

A company sells a vehicle for $12,000. The vehicle's original cost was $20,000, and it has accumulated depreciation of $9,000. What is the gain or loss on the sale, and how should it be recorded?

Accepted Answer

Gain of $1,000, recorded as a credit.

Answer

Loss of $1,000, recorded as a debit.

Answer

Gain of $3,000, recorded as a credit.

Answer

No gain or loss, no entry required.

A company sells a vehicle for \$12,000. The vehicle's original cost was \$20,000, and it has accumulated depreciation of \$9,000. What is the gain or loss on the sale, and how should it be recorded?