On December 31, Strike Company sold one of its batting cages for $20,000. The equipment had an initial cost of $310,000 and had accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?
A) gain of $20,000
B) gain of $30,000
C) loss of $20,000
D) loss of $30,000

Question

Quizplus · Accepted Answer

Loss on sale = Selling price - Book value of asset = $20,000 - ($310,000 - $260,000) = $(30,000)

On December 31, Strike Company Sold One of Its Batting