Question 9 (3 points) A company uses the composite method to record the depreciation for a group of assets indicated below. Asset Cost Salvage value Estimated useful life (in years) R 20,000 2,000 10 S 25,000 2,500 5 T 92,000 4,000 8 Assume that the firm sold Asset S for cash of 9,000 after 3 years of usage. Which of the following is FALSE regarding the recording of the sale of Asset S using the composite method? "Gain/loss on sale" will not be recorded. On Jan 1, 2017, a company purchased equipment at a cost of $60,000. Depreciation has been recorded at a rate of $6,000 per year, resulting in a balance in accumulated depreciation of $18,000 and book value of $42,000 at Dec. 31, 2019. The equipment was sold on June 1, 2020, for $34,000. Based on the above information, the amount of gain or loss on sale of the equipment is? A loss of $ 5,500. A gain of $ 5,500. O A gain of $ 8,000. A loss of $ 8,000. Question 9 (3 points) A company uses the composite method to record the depreciation for a group of assets indicated below. Asset Cost Salvage value Estimated useful life (in years) R 20,000 2,000 10 S 25,000 2,500 5 T 92,000 4,000 8 Assume that the firm sold Asset S for cash of 9,000 after 3 years of usage. Which of the following is FALSE regarding the recording of the sale of Asset S using the composite method? "Gain/loss on sale" will not be recorded. On Jan 1, 2017, a company purchased equipment at a cost of $60,000. Depreciation has been recorded at a rate of $6,000 per year, resulting in a balance in accumulated depreciation of $18,000 and book value of $42,000 at Dec. 31, 2019. The equipment was sold on June 1, 2020, for $34,000. Based on the above information, the amount of gain or loss on sale of the equipment is? A loss of $ 5,500. A gain of $ 5,500. O A gain of $ 8,000. A loss of $ 8,000