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Plant assets/asset is being depreciated at a rate of $500

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1.Plant assets are:

tangible assets used in the operation of a business that have a useful life of more than one accounting period.
current assets.
held for sale.
intangible assets used in the operations of a business that have a useful life of more than one accounting period.

2. An asset's book value is $36,000 on January 1, 2007. The asset is being depreciated at a rate of $500 per month on the straight-line method. Assuming the asset is sold on July 1, 2008 for $25,000, the company should record:

neither a gain nor loss is recognized on this type of transaction.
a gain on sale of $2,000.
a gain on sale of $1,000.
a loss on sale of $2,000.

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Solution Summary

The expert examines how plants assets/asset is being depreciated at a rate of $500 per day.

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1. Correct Answer is given as below.

Plant assets are tangible assets used in the operation of a business that have a useful life of more than one accounting period.

They are not current assets.

They are not held for sale.

They are not intangible assets used ...

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