The sale of equipment costing £8,000, with accumulated depreciation of £6,700 and a sale price of £2,000, would result in a:

Name: The sale of equipment costing £8,000, with accumulated depreciation of £6,700 and a sale price of £2,000, would result in a:
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

The book value of the equipment is calculated as the cost (£8,000) minus accumulated depreciation (£6,700), which equals £1,300. Selling it for £2,000 results in a gain of £700 (£2,000 - £1,300).

The Sale of Equipment Costing £8,000, with Accumulated Depreciation of £6,700