In: Accounting
Answer:- Option B
A Gain on sale of $2,000
Given Book Value of the Asset as on December 31, Year 5 = $ 18,000
As on 31 December , Year 5 Asset is sold for $ 20,000
Here , Book Value is given So we dont need any adjustment of Depriciation
The sale proceeds from the Asset is More than its book Value By $ 2,000
Gain on Sale of Asset = $ 20,000 - $18000
Gain on Sale of Asset = $ 2,000