Question

Granite Stone Creamery sold ice cream equipment for $17,600. Granite Stone originally purchased the equipment for $94,000, and depreciation through the date of sale totaled $73,000. What was the gain or loss on the sale of the equipment

Answer 1

Answer:loss on the sale of the equipment =$3,400

Explanation:

---We first compute the book value of the equipment

 Cost of asset=$94,000

accumulated depreciation = $73,000

Book Value of assets =  Cost of asset-accumulated depreciation

= $94,000 - $73,000= $21,000

---Gain or Loss on the asset

Sale value of equipment = $17,600

Book value of equpment= $21,000

loss on sale of equipment  = Sale value of equipment-Book value of equipment=$17,600-  $21,000= -$3,400