Barnhart's sold a piece of restaurant equipment to another restaurant on July 1,2013 for $1,100 cash.The equipment originally cost $12,000,had an estimated life of 20 years,and estimated salvage value of $2,000.Barnhart's had recorded total depreciation of $9,000 through the end of 2012,using the straight-line method.Barnhart's had to update the depreciation of the asset before recording the sale.
-After the depreciation was updated,Barnhart's then recorded the sale transaction.The effect of the sale on the income of the company was a:
A) gain of $250.
B) loss of $1,650.
C) loss of $1,000.
D) loss of $2,900.
Correct Answer:
Verified
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