A company sells a plant asset that originally cost $250000 for $50000 on December 31, 2017. The accumulated depreciation account had a balance of $100000 after the current year's depreciation of $25000 had been recorded. The company should recognize a

$75000 loss on disposal.

$100000 gain on disposal.

$200000 loss on disposal.

$100000 loss on disposal.

2.

On July 1, 2016, Ivanhoe Company sells machinery for $238000. The machinery originally cost $670000, had an estimated 5-year life and an expected salvage value of $70000. The Accumulated Depreciation account had a balance of $420000 on January 1, 2016, using the straight-line method. The gain or loss on disposal is

$48000 gain.

$112000 loss.

$112000 gain.

3.

A company purchased factory equipment on April 1, 2017, for $159000. It is estimated that the equipment will have a $15000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017, is

$10800.

$14400.

$15900.

$11925.

$24000 loss.