Answer:
Gain= $90,000
Explanation:
Giving the following information:
Selling price= $1,000,000
Original price= $5,220,000
Accumulated depreciation= $4,310,000
<u>First, we need to calculate the book value:</u>
Book value= purchase price - accumulated depreciation
Book value= 5,220,000 - 4,310,000
Book value= $910,000
<u>Now, if the selling price is higher than the book value, the company gain from the sale:</u>
Gain/loss= selling price - book value
Gain/loss= 1,000,000 - 910,000
Gain= $90,000
