A dump truck was bought for P $ 30,000 six years ago.  It will have a salvage value of $ 3,000 four years from now.  The owner sold it now for $ 8,000.  If depreciation used is Sinking Fund Method at 6%, find the gain or loss in the selling of the dump truck. Show complete solution. Do not use excel a. $7,712 loss b. $5,214 loss c. $7,712 gain d. $5,214 gain

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A dump truck was bought for P $ 30,000 six years ago.  It will have a salvage value of $ 3,000 four years from now.  The owner sold it now for $ 8,000.  If depreciation used is Sinking Fund Method at 6%, find the gain or loss in the selling of the dump truck. Show complete solution. Do not use excel

a. $7,712 loss

b. $5,214 loss

c. $7,712 gain

d. $5,214 gain

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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