Question

Reinek company sold a fixed asset for $25,000. the asset was originally purchased at a cost of $64,000. on the date of sale, the accumulated depreciation was $53,000. calculate the gain or loss on the sale of the asset.​ octonauts

Answer 1

Original cost of the asset = 64,000 less Accumulated depreciation = 53,000 Value of the asset after depreciation = 64000 - 53000 = 11,000 Since the asset was sold for $25,000, an amount higher than the book value, there is a gain of 14,000 That is, 25,000 - 11,000.= 14,000.