Afixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. what is the amount of the gain or loss on the disposal of the fixed asset?
a. $3,500 gain
b. $1,000 gain
c. $1,000 loss
d. $2,500 loss
c. $3,500 loss
d. $2,500 gain

The correct answer is B that is gain of $1,000

Explanation:

The amount of gain or loss on the disposal of the fixed assets is computed as:

Amount of loss or gain = (Selling Price + Accumulated depreciation) - Cost of fixed assets

where

Selling Price is $27,500

Accumulated depreciation is $3,500

Cost of fixed assets is $30,000

Putting the values above:

= ($27,500 + $3,500) - $30,000

= $31,000 - $30,000

= $1,000

It is a gain of $1,000 on disposal of the fixed assets.

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.