Question

On December 31, Strike Company sold one of its batting cages for $193,460. The equipment had an original cost of $227,600 and has accumulated depreciation of $34,140. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction

Answer 1

No loss No profit

Step-by-step explanation:

Given:

Original cost of equipment = $227,600

Selling amount = $193,460

Accumulated depreciation = $34,140

Computation of profit or loss on sales:

Original cost of equipment after deducting depreciation = Original cost of equipment - Accumulated depreciation

= $227,600 - $34,140

= $193,460

Profit or loss = Selling amount - Original cost of equipment after deducting depreciation

= $193,460 - $193,460

= $0