uhtzt8i2mx
Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

A company sells equipment for $5,000. The original cost was $50,000. The
accumulated depreciation is $45,000. The sale results in
O A. a gain of $1,000
a
B. neither a gain nor a loss
O c. a loss of $1,000
D. a gain of $5,000

Sagot :

abiolataiwo2015

Assuming the company sells equipment for $5,000 and the original cost was $50,000. The sale results in: B. neither a gain nor a loss

Gain or loss

First step is to calculate the book value using this formula

Book value=Original cost-Accumulated depreciation

Let plug in the formula

Book value=$50,000-$45,000

Book value= $5,000

Second step

Since the proceeds (equipment) is the amount of $5,000 in which the book value is as well $5,000 there is neither gain nor a loss.

Inconclusion the sale results in: B. neither a gain nor a loss.

Learn more about gain or loss here:https://brainly.com/question/25278228

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.