Calculating Gain or Loss
On June 1, 2017, Brislin company sold some equipment for $22,000. The original cost was $80,000, the estimated salvage value was $8,000, and the expected useful life was 8 years. The equipment was fully depreciated. How much is the gain or loss on the sale?
Since the asset is fully depreciated, we can simply subtract the salvage value of 8,000 from the sale price of 22,000, giving us a net gain of 14,000.
- Student: Astrid M.
- Textbook: ACC 291
- Course: Accounting Week 2