A company sold equipment that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the equipment was $40,0

Question

3 years ago

6

00. The company should recognize a:

1 answer:

Maurinko [17] · Answer 1 · 2021-12-31T12:02:45+03:00

Answer:

$0 Gain or Loss

Explanation:

Given that,

Original cost of the equipment = $100,000

Accumulated depreciation on the equipment = $40,000

Book value of the equipment:

= Original cost of the equipment - Accumulated depreciation on the equipment

= $100,000 - $40,000

= $60,000

Gain/Loss = Sale value - Book value of the equipment

= $60,000 - $60,000

= $0

Therefore, the company should recognize a $0 Gain or Loss.