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Korolek [52]
3 years ago
14

On December 31, Strike Company sold one of its batting cages for $20,000. The equipment had an initial cost of $310,000 and had

accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?
a.gain of $30,000
b.gain of $20,000
c.loss of $20,000
d.loss of $30,000
Business
1 answer:
KonstantinChe [14]3 years ago
8 0

Answer:

d.loss of $30,000

Explanation:

The initial cost of the cage: $310,000.00

Selling price: $ 20,000.00

Depreciation recorded: $260,000.00

calculating book value: (initial cost-Depreciation)

=$310,000-$260,000

Book value =$50,000.00

Profit or loss=selling price- book value.

=$20,000.00- $50,000.00

=($30,000.00)

loss of $ 30,000.00

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