A truck costing $28,000 has accumulated depreciatioh of $23,500. The truck is so

Question

A truck costing $28,000 has accumulated depreciatioh of $23,500. The truck is sold for $4,250. The gain or loss would bet su ol 008,120 sule A] Loss on Disposal of $23,750. B] Gain on Disposal of $250. [C] Loss on Disposal of $250. D] Gain on Disposal of $4,250. 15] The following is selected data for Inland Industries: 2016 $1.200,000 $1.300,000 Net Income Total Current Assets Total Assets 58 164 150 788, The return on assets for 2016 was: (Round your final answer two decimal places, x.xx%) A) 14.45%. B) 9.17%. C) 18.11%. D) 7.32%.

Explanation / Answer

Solution 4:

Cost of truck sold = $28,000

Accumulated depreciation = $23,500

Book value = $28,000 - $23,500 = $4,500

Sale value = $4,250

Gain (Loss) on sale of truck = $4,250 - $4,500 = ($250)

Hence option C is correct.

Solution 5:

Average assets for 2016 = ($810,000 + $788,000) /2 = $799,000

Net Income for 2016 = $58,500

Return on assets = Net Income / Average total assets

Return on assets for 2016 = $58,500 / $799,000 = 7.32%

Therefore Option D is correct.

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