Question

Carly's Classic Limo Service sold one of its automobiles for $19,000. The car was an antique car that Carly used to promote the business. The car had an original cost of $13,000 with $11,000 in accumulated depreciation. The recognized gain on the sale was $

Answer 1

$17,000

Step-by-step explanation:

The reason is that the recognized gain is the difference between the Carrying Value and the Sale Value of the asset.

Here

Carrying value of asset = $13,000 Cost - $11,000 Accumulated Depreciation

Carrying value of asset = $2,000

Sale Value is $19,000

Recognized Gain = $19,000 Sale Value - Carrying Value $2,000

Recognized Gain = $17,000