Computer equipment used in the business office of a not-for-profit organization was sold for $9,000. The original cost of the equipment had been $21,000 and there was $15,000 of accumulated depreciation as of the date of sale. How will the gain be reported?

Question

Quizplus · Accepted Answer

The gain of $3,000 (sales price - net book value = $9,000 - $12,000) will be reported in changes in net assets without donor restrictions. This is because it is not restricted by a donor or a grant and can be used for any general purpose of the organization.

Computer Equipment Used in the Business Office of a Not-For-Profit