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Person Dot Company sold a delivery truck on July 1, 2005, for $5,000. The original cost of the truck was $30,000. Each December 31, Parson s recognized $4,500 of depreciation using the straight-line method. On January 1, 2005, the accumulated depreciation was $22,500. The liquidation value for the truck is $3,000 on July 1. Compute Parson s gain or loss on the sale of the truck.

a) $2,000 gain

b) $2,500 loss

c) $250 loss

d) $250 gain

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M971811

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