A piece of equipment that was originally purchased for $33,000, had accumulated depreciation of $25,000, and was sold for $8,000 would recognize a gain of $1,000.

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Quizplus · Accepted Answer

The equipment's book value (original cost - accumulated depreciation) is $33,000 - $25,000 = $8,000. If it is sold for $8,000, there is no gain or loss recognized. The gain would only be $1,000 if the equipment was sold for $9,000.

A Piece of Equipment That Was Originally Purchased for $33,000