The records of Pam Company showed the following about a machine on January 1,20H: Purchased 1/1/20E for $35,000
Accumulated depreciation at January 1,20H,$26,400
On July 1,20H,the machine was sold for $7,000.Depreciation for the first six months of 20H was $1,467.The gain or loss on disposal would be which of the following?
A)$133 loss
B)$133 gain
C)$1,600 loss
D)$1,600 gain

Question

Quizplus · Accepted Answer

The book value of the machine on July 1, 20H is $35,000 - ($26,400 + $1,467) = $7,133. The machine was sold for $7,000, resulting in a loss of $7,133 - $7,000 = $133.

The Records of Pam Company Showed the Following About a Machine