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13 November, 03:03

On December 31, Strike Company traded in one of its batting cages for another one that has a cost of $546,370. Strike receives a trade-in allowance of $36,045. The old equipment had an initial cost of $267,000 and has accumulated depreciation of $226,950. Depreciation has been recorded up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction?

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  1. 13 November, 03:32
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    loss = $4,005

    Explanation:

    given data

    cost = $546,370

    allowance = $36,045

    old equipment initial cost = $267,000

    accumulated depreciation = $226,950

    solution

    we know that here Old equipment cost will be

    Old equipment cost = $267,000 - $226,950

    Old equipment cost = $40,050

    and

    Loss will be here

    loss = $40,050 - $36,045

    loss = $4,005
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