Orr Corporation sold equipment for $30000. The equipment had an original cost of $90000 and accumulated depreciation of $45000. As a result of the sale

Question

Quizplus · Accepted Answer

When equipment is sold, it results in a gain or a loss. In this case, we can calculate the gain as follows:

Sale Price - (Original Cost - Accumulated Depreciation) = Gain/Loss

$30000 - ($90000 - $45000) = -$15000 (loss)

Therefore, the sale of the equipment will result in a decrease in net income of $15000.

Orr Corporation Sold Equipment for $30000