Hawthorne Company sold an old computer for $3,000 cash. The computer cost $45,000 and had accumulated depreciation through the date of sale totaling $42,000. The company will recognize:

Question

Quizplus · Accepted Answer

The book value of the computer is $3,000 ($45,000 cost - $42,000 accumulated depreciation). Since the sale price equals the book value, there is neither a gain nor a loss.

Hawthorne Company Sold an Old Computer for $3,000 Cash