Question

A company sold equipment that originally cost $290000 for $203000 cash. The accumulated departing the equipment was $87000.The company should recognize a:

Answer 1

Gain or loss= 0

Explanation:

Gain or loss= Proceeds from sale- Book value

Proceeds from sale= 203,000

Book value= original cost- accumulated depreciation= 290,000-87,000

Book value= 203,000

Gain or loss= 203,000-203,000=0