Equipment that cost $500 000 and had accumulated depreciation of $300 000 was sold for $180 000.This results in a:

Name: Equipment that cost $500 000 and had accumulated depreciation of $300 000 was sold for $180 000.This results in a:
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

The equipment was sold for $180,000, which is $320,000 less than its carrying value (original cost - accumulated depreciation). Therefore, there is a loss of $320,000 - $500,000 + $300,000 = $20,000.

Equipment That Cost $500 000 and Had Accumulated Depreciation of $300