contestada

A company sold equipment that originally cost $290,000 for $145,000 cash. The accumulated depreciation on the equipment was $145,000. The company should recognize a:

Respuesta :

Ritmeks

Answer:

$0 gain/loss

Explanation:

A company sold an equipment that originally cost $290,000 for $145,000

The accumulated depreciation on the equipment was $145,000

The first step is to calculate the book value of the equipment

Book value of the equipment= Cost of equipment-accumulated depreciation

= $290,000-$145,000

= $145,000

Therefore, the gain/loss on the equipment can be calculated as follows

= Selling price-book value

= $145,000-$145,000

= 0

Hence there is no recognized gain or loss on the equipment

Kolawole845

Answer:

Company would recognize a no loss or gain on the disposal i.e Nil

Explanation:

The gain or loss on disposal is the difference between the carrying value of an assets at the point of disposal and the the disposal value.

Gains/(Loss)= Disposal value - carrying value

The carrying value is the difference between the historical cost and the accumulated depreciation till date.

Carrying value = Historical cost - Accumulated depreciation till date

Carrying value = 290,000 - 145,000 = 145 ,000

Gains/Loss= 145,000 - 145,000 = 0.

Company would recognize a no loss or gain on the disposal i.e Nil

Otras preguntas