Answer:
Loss on transaction is $12,043
Step-by-step explanation:
Given:
Initial cost of equipment = $472,800
Accumulated depreciation = $449,160
Salvage value = Initial cost - accumulated depreciation
= $472,800 - 449,160
= $23,640
Selling price of equipment = $11,597
Since selling price is lesser than salvage value, the company incurs loss on the sale of equipment.
Loss on sale of equipment = Salvage value - selling price
= 23,640 - 11,597
= $12,043