On january 1, 2013, jacob inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. the truck has a useful life of eight years and an estimated residual value of $8,000. on december 31, 2015, jacob inc. sold the truck for $30,000. what amount of gain or loss should jacob inc. record on december 31, 2015?

The amount of gain should Jacob Inc. record on December 31, 2015 is $5,000

Explanation:

Truck Value =  $48,000

Annual depreciation =   ( $48,000 -   $8,000) / 8 = $40,000 / 8= $5,000

First year (2013) = $40,000 - $5,000 =  $35,000

Second year (2014) = $35,000 - $5,000 =  $30,000

Third year (2015)= $30,000 - $5,000 =  $25,000

Gain  = Sale Value - Truck Value (actual) = $30,000 - $25,000 = $5,000

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; specific performance;