Question

Cullumber Company sold office furniture for $54,000. The furniture had an original cost of $147,000 and accumulated depreciation of $73,500. Ignoring the tax effect, as a result of the sale

Answer 1

Cullumber Company incurred a loss of $19,500 as a result of selling office furniture.

Step-by-step explanation:

The question is about the result of selling office furniture for Cullumber Company. From the given information, we know that the furniture had an original cost of $147,000 and accumulated depreciation of $73,500. The revenue from selling the furniture is $54,000. To determine the result of the sale, we need to calculate the gain or loss from the sale.

The gain or loss is calculated as the selling price minus the book value of the furniture. The book value is the original cost minus accumulated depreciation. In this case, the book value is $147,000 - $73,500 = $73,500. So the gain or loss from the sale is $54,000 - $73,500 = -$19,500.

Therefore, as a result of the sale, Cullumber Company incurred a loss of $19,500.