Question

Granite stone creamery sold ice cream equipment for $11,600. granite stone originally purchased the equipment for $78,000, and depreciation through the date of sale totaled $64,500. what was the gain or loss on the sale of the equipment?

Answer 1

original price = $78,000
depreciation =$64,500
Selling price = $11,600
the least money that Granite should have sold the ice cream equipment to avoid any loss is 78,000-64,500= 13,500 but he sold it at $11,600 making a loss of 13500-11600= $1900
Granite made a loss of $1900 on the sale of the equipment.