Answer:
There will be an $800 loss
Step-by-step explanation:
The initial cost of the asset is $14,400
When an asset depreciates, it loses its potential value over time. In this case, the total depreciation of our asset is given as $8,000.
The Current value of the asset = Initial Value - Accumulated Depreciation
Current value = $14,400 - $8,000 = $6,400
Since the asset is sold for $5,600, it is clear that this is a loss, as the selling price of $5,600 is less than the actual price of $6,400. So,
Loss = Actual (Cost) Price - Selling Price = $6,400 - $5,600 = $800
