An asset that costs $97,600 and has accumulated depreciation of $82,000 is sold for $18,000. what amount of gain or loss will be recognized when the asset is sold?

a gain of $2,400

Explanation:

To compute the gain or loss on sale, we must determine first the book value of an asset at the time of sale then deduct the proceeds of the sale.

First, compute the book value of an asset.

Cost of an asset $97,600 less accumulated depreciation of $82,000 equals $15,600

Finally, find the difference between the proceeds and the book value of an asset to determine the gain or loss on sale.

Book value $15,600

Less: Proceeds $18,000

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Gain of $2,400

*Proceeds is greater than the book value of an asset that is why the sale is on gain of $2,400

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

our agriculture industry and our business industry