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19 May, 17:18

On December 31, 2019, Hamilton Inc. sold a used industrial crane for $1,120,000 cash. The original cost of the crane was $5.38 million and its accumulated depreciation equaled $4.39 million on December 31, 2019. What is the gain or loss from the December 31, 2019 equipment sale?

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  1. 19 May, 17:38
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    Gain or loss on sale of asset = Sale price - Book value of asset

    The original cost of the crane was 5.38 million and its accumulated depreciation was 4.39 million

    5.38-4.39=0.99 million

    $0.99 million is the book value of the asset

    the sale price was 1.12 million

    1.12 million - 0.99 million = gain on asset

    =0.13 million

    Gain on sale of equipment = $0.13 million
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