Question

Greg sold some equipment for $72,510 on June 13, 2019. Greg had originally purchased the equipment for $86,750 on November 21, 2018. The equipment was subject to depreciation of $17,350. What gain or loss will Greg recognize on the sale

Answer 1

capital gain = $3110

Step-by-step explanation:

given data

sold equipment = $72,510

originally purchased equipment = $86,750

depreciation = $17,350

solution

first we get here Book value of Equipment that is express as

Book value of Equipment = original cost of equipment - depreciation .......1

Book value of Equipment = $86750 - $17350

Book value of Equipment = $69400

so we get here gain that is express as

capital gain = sale of equipment - book value ...........2

capital gain = $72510 - $69400

capital gain = $3110