Loss / gain on disposal of fixed assets, cash flow statement

Please see the attached file.
23. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?
$2,500 loss
$1,000 loss
$2,500 gain
$1,000 gain

Attachments

Solution Summary

Answers five conceptual questions on accounting. The concepts discussed are depreciation accounting, loss / gain on sale of fixed assets and calculating the cash flow from operations.