Final answer:
To determine the loss on the sale of ice cream equipment, the book value of $15,000 is compared to the sale price of $17,300, resulting in a calculated loss of $2,300, which is absent from the provided options. Correct answer is approximately option 1.
Step-by-step explanation:
Calculating the Loss on Sale of Ice Cream Equipment
The question at hand requires us to calculate the loss incurred by the Bomb Pop Corporation on the sale of ice cream equipment. To compute the loss, we must first determine the book value of the equipment at the time of sale. The book value is calculated as the original purchase price minus accumulated depreciation. In this case, the original purchase price was $39,000, and the accumulated depreciation was $24,000. Thus, the book value at the time of sale is $39,000 - $24,000 = $15,000.
Subsequently, we compare the book value to the actual sale price of the equipment. The equipment was sold for $17,300, which, when compared to the book value, indicates that the company incurred a loss since the sale price is less than the book value. The loss can be calculated as the book value minus the sale price, which in this case is $15,000 - $17,300 = -$2,300. However, since a loss is represented by a positive number in financial statements, we take the absolute value, reflecting a loss of $2,300.
It appears there has been a mix-up with the provided options as none of them correctly indicate the calculated loss of $2,300. If we have to choose the closest answer from the given options despite none being correct, option 1) $1,300 is the closest to the actual loss but still not accurate.