On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $203,433.00 with an accumulated depreciation of $183,089.70. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $18,308.97. What is the amount of the gain or loss on this transaction

Question

Cheyanne Salazar

Business

28 February, 22:13

On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $203,433.00 with an accumulated depreciation of $183,089.70. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $18,308.97. What is the amount of the gain or loss on this transaction

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Zayne Hughes · Answer 1

loss = $2,035.33

Explanation:

Giving the following information:

Purchasing price = $203,433.00

Accumulated depreciation = $183,089.70.

The company found a company that is willing to buy the equipment for $18,308.97.

The gain or loss from selling an asset depends on the book value. If the selling price is higher than the book value, the company gain from the sale.

Book value = purchasing price - accumulated depreciation

Book value = 203,433 - 183,089.7 = 20,343.3

Gain/loss = 18,307.97 - 20,343.3 = $2,035.33 loss