Question

Golden Company sold an asset with a cost of $421,768 and accumulated depreciation of $217,438 for $243,512. What is the amount of gain or loss? If it is a gain, input your number as a positive number. If it is a loss, use a negative sign. Do not use dollar signs or decimals.

a) $176,330
b) $24,074
c) $198,280
d) -$178,256
e) -$31,438

Answer 1

The gain or loss on the sale of the asset is $39,182.

Step-by-step explanation:

To calculate the gain or loss on the sale of the asset, we need to determine the book value of the asset first. The book value is the cost of the asset minus the accumulated depreciation. In this case, the book value is $421,768 - $217,438 = $204,330. Since the asset was sold for $243,512, the gain or loss is the selling price minus the book value, which is $243,512 - $204,330 = $39,182. Since this is a gain, the answer is $39,182. Therefore, none of the options a, b, c, d or e are correct.