Cooper Resources,Inc.owns some equipment with an original cost of $53,800 and accumulated depreciation of $26,350.If the equipment is sold for $28,500,the gain or loss recognized on the sale would be:

Question

Quizplus · Accepted Answer

The book value of the equipment is calculated as the original cost minus accumulated depreciation, which is $53,800 - $26,350 = $27,450. Selling the equipment for $28,500 results in a gain of $28,500 - $27,450 = $1,050.