On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction

Question

Janet Hartman

Business

28 September, 05:02

On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction

+2

Answers (1)

Know the Answer?

Klein · Answer 1

Gain/loss = 0

Explanation:

Giving the following information:

On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753.

First, we need to determine the book value:

Book value = original cost - accumulated depreciation

Book value = 258,350 - 38,753 = 219,597

The gain or loss from selling an asset depends on selling it for a higher or lower value than the book value.

Gail/loss = 219,597 - 219,597

Gain/loss = 0