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?

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