On January 1, Year 1, Sheffield Corporation purchased equipment for $100,000. Sheffield used the straight-line method of depreciation with a $12,000 salvage value and a useful life of 5-years. On January 1, Year 3, Sheffield sold this equipment for $70,000.
Required:
a)Calculate the gain or loss Sheffield should recognize from this sale.

Question

Quizplus · Accepted Answer

The Answer of On January 1, Year 1, Sheffield Corporation purchased equipment for $100,000. Sheffield used the straight-line method of depreciation with a $12,000 salvage value and a useful life of 5-years. On January 1, Year 3, Sheffield sold this equipment for $70,000.
Required:
a)Calculate the gain or loss Sheffield should recognize from this sale.

On January 1, Year 1, Sheffield Corporation Purchased Equipment for $100,000