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Sagot :
Answer:
gain of $3,200
Explanation:
The equipment cost $12,000.
The depreciable amount = Cost price - salvage value
=$12,000 -$ 2,000
=$10,000
The equipment was being depreciated over five years. The depreciation rate will be
=1/5 x 10=0.2
=20%
Depreciation per year will be
=20/100 x $10,000
=0.2 x $10,000
=$2,000 per year
Depreciation for 3 years
=$2,000 x 3
=$6,000
The book value of the equipment after three years will be
=cost price - accumulated depreciation
=$10,000 - $6,000
=$4,000
The equipment was sold for $7,200
the gains will be selling price - book value
=$7,200 - $4,000
=$3,200
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