#21 and #22

An asset was purchased for $12,000. The asset's estimated useful life was 3 years and its residual value was $2000. How much gain or loss is reported if the asset is sold for $3,000 at the beginning of the fourth year? 0 A) $2,000 loss C) $1,000 loss B) $1,000 gain D) No gain or loss Sales revenue Cost of goods sold Operating expenses Interest Revenue $460,000 300,000 85,000 5,000 What is gross profit? FILL