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Business, 25.03.2020 17:36 DerekMoncoal
On January 1, Year 1, Raven Limo Service, Inc. paid $64,000 cash to purchase a limousine. The limo was expected to have a six year useful life and a $10,000 salvage value. On January 1, Year 5 the limo was sold for $30,000 cash. Assuming Raven uses straight-line depreciation, the Company would recognize a:.
a. $2,000 loss.
b. $2,000 gain.
c. $20,000 loss.
d. $20,000 gain.
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Answers: 3
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On January 1, Year 1, Raven Limo Service, Inc. paid $64,000 cash to purchase a limousine. The limo w...
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