When a company reports a loss on the sale of a depreciable asset, which of the following is always true? multiple choice
a. the company sold the asset for less than book value.
b. the company sold the asset before the useful life was over.
c. the company sold the asset for less than accumulated depreciation.
d. the company sold the asset for less than fair value.

A - The company sold the asset for less than book value.

Explanation: A loss on the sale of a depreciable asset is the negative difference between the purchase price of an asset less the total accumulated depreciation and any other charges.

This can also be described as the price a depreciable asset is sold which is less than the Net book Value of the asset in the books of the company.

$10.0000 x 1.06 = 10,600 after one year

$10,000  x (1.06)⁵ = $13382.26 for 5 years (rounded to the nearest penny. 

$10,000 x (1.06)^ 15th power = $23,965.58 for 15 years (rounded to the nearest penny

Note how the 1 in front of the interest includes the principal.
Note that the exponents reflect the amount of time (in years) that the money was left in the account.
I did not use an exponent for the first year since a n¹ = n (any number to the power of 1 is that number)