Question

on december 31, 2022, hamilton incorporated sold a used industrial crane for $1,075,000 cash. the original cost of the crane was $5.32 million and its accumulated depreciation equalled $4.36 million on december 31, 2022. what is the gain or loss from the december 31, 2022 equipment sale?

Answer 1

To calculate the gain or loss from the December 31, 2022 equipment sale, subtract the book value of the crane from the cash received. In this case, there is a gain of $115,000 from the equipment sale.

Step-by-step explanation:

To calculate the gain or loss from the December 31, 2022 equipment sale, we need to subtract the book value of the crane from the cash received. The book value is the original cost minus accumulated depreciation. In this case, the book value is $5.32 million - $4.36 million = $960,000.

So, the gain or loss is $1,075,000 - $960,000 = $115,000. Since the cash received is greater than the book value, there is a gain of $115,000 from the equipment sale.