An asset was purchased for $12,000. The asset's estimated useful life was 5 years and its residual value was $2,000. Straight-line depreciation was used. How much gain or loss is reported if the asset is sold for $400 at the end of the fifth year

$1,600 loss

Explanation:

Profit = Proceeds - Carrying Amount

where,

Carrying Amount = Cost - Accumulated depreciation

Accumulated depreciation calculation :

Note the Company uses straight line method.

Depreciation expense = (Cost - Residual) ÷ Estimated Useful Life

therefore,

Depreciation expense = ($12,000 - $2,000) ÷ 5

                                      = $2,000

Accumulated depreciation :

At the end of fifth year we would have used the asset for 5 years.

Accumulated depreciation is the total of depreciation after 5 years.

This would be $10,000 ($2,000 x 5)

thus,

Carrying Amount = $12,000 - $10,000 = $2,000

therefore

Profit = $400 - $2,000

         = - $1,600

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !