On January 2,2017,Hannah Company sold a machine for $1,000 that it had used for several years.The machine cost $12,000 and had accumulated depreciation of $9,000 at the time of sale.What gain or loss will be reported on the income statement for the sale of the machine?

Question

Quizplus · Accepted Answer

The selling price of the machine is $1,000, which is less than the cost of $12,000 less accumulated depreciation of $9,000, or $3,000. Therefore, the company incurred a loss of $2,000 ($3,000 - $1,000) on the sale of the machine.

On January 2,2017,Hannah Company Sold a Machine for $1,000 That