Loss on the transaction is $37,000
As per given data
Cost of Cages = $206,790
Accumulated depreciation = $186,111
Selling Price = $18,611.10
Sale price of Asset is compared with the net book value of that asset to calculate the gain or loss arising from the sale of asset.
Net book value is the net value of the cost of asset and the accumulated depreciation of that asset.
Net Book Value = Cost of Cages - Accumulated depreciation
Net Book Value = $225,000 - $170,000 = $55,000
Selling Price = $18,000
Loss on Sale of asset = $55,000 - 18,000 = $37,000
Therefore,
Loss on the transaction is $37,000
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