Equipment costing $14,000 with accumulated depreciation of $10,000 was sold for $3,000.The company should recognize a $1,000 loss on disposal of the equipment.

Name: Equipment costing $14,000 with accumulated depreciation of $10,000 was sold for $3,000.The company should recognize a $1,000 loss on disposal of the equipment.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

The book value of the equipment is $4,000 ($14,000 cost - $10,000 accumulated depreciation). Selling it for $3,000 results in a $1,000 loss ($4,000 - $3,000).

Equipment Costing $14,000 with Accumulated Depreciation of $10,000 Was Sold