Sports Med sold an X-ray machine that originally cost $100,000 for $60,000.The accumulated depreciation on the machine to the date of sale was $40,000.On this sale,Sports Med should recognize:

Question

Quizplus · Accepted Answer

The book value of the X-ray machine at the time of sale is calculated by subtracting the accumulated depreciation ($40,000) from the original cost ($100,000), resulting in a book value of $60,000. Since the machine was sold for $60,000, which equals its book value, there is no gain or loss recognized on the sale.

Sports Med Sold an X-Ray Machine That Originally Cost $100,000