Another homework question.

An asset's book value is $18,000 on June 30, 2007. The asset is being depreciated at an annual
rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, 2008 for
$15,000, the company should record:
A loss on sale of $1,500.
A gain on sale of $1,500.
Neither a gain nor a loss is recognized on this type of transaction.
A gain on sale of $3,000.
A loss on sale of $3,000.

I believe the correct answer is the second-gain on sale of $1500 because there has only been a 6 month period to account for the depreciation so it is $1500 vice $3000.

Am I looking at this correctly?

Thanks

I am assuming the year end is June 30 and that the 18,000 book value includes depreciation for 06-07.

Therefore,
June 30, 2008, Book Value is 15,000

Asset sold December 31, 2008 for 15,000

Therefore, the journal entry is:
Dr. Cash 15,000
Dr. Depreciation Expense 1,500 (3,000 x .5)
Cr. Book Value of asset 15,000
Cr. Gain 1,500

Conclusion, yes, a gain of 1,500 is correct.