An asset's book value is $21,600 on January 1, Year 6. The asset is being depreciated $300 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $15,700, the company should record:
Multiple Choice
A gain on sale of $250.
A loss on sale of $500.
A loss on sale of $250.
Neither a gain or loss is recognized on this type of transaction.
A gain on sale of $500.
