Answer:
They had a loss of $850
Step-by-step explanation:
The expression for the depreciable cost is as follows;
depreciable cost=Acquisition cost-salvage value
where;
acquisition cost=$50,000
salvage value=$8,000
replacing;
depreciable cost=50,000-8,000=$42,000
depreciable cost=$42,000
The annual depreciation can be expressed as;
annual depreciation=depreciable cost/estimated life
where;
depreciable cost=$42,000
estimated life=6 years
replacing;
annual depreciation=42,000/6=7,000
annual depreciation=$7,000
depreciation between December 31, 2016 and April 1, 2017=(3/12)×7,000=$1,750
depreciation by April 1,2017=1,750+29,400=$31,150
Profit/loss=sale-book value by April 1,2017
book value by April 1, 2017=50,000-31,150=$18,850
Profit/loss=18,000-18,850=-$850
They had a loss of $850