An Asset That Was Originally Purchased for $46,000 Has an Estimated

An asset that was originally purchased for $46,000 has an estimated salvage value of $4,000 and a 7 year life. The depreciation on the asset has been properly recorded through the end of Year 2 using the straight-line method. Assuming the asset is sold on March 31 of Year 3, what is the appropriate amount of depreciation to record before accounting for the disposal?

A) $6,000.
B) $1,500.
C) $4,500.
D) $1,643.
E) No entry is needed prior to recording the disposal.

Correct Answer:

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