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on december 31, 2022, hamilton incorporated sold a used industrial crane for $1,120,000 cash. the original cost of the crane was $5.38 million and its accumulated depreciation equalled $4.39 million on december 31, 2022. what is the gain or loss from the december 31, 2022 equipment sale?

Sagot :

The gain on  equipment sale is $130,000.

original cost- accumulated depreciation = net value

$5.38 million - $4.39 million = $0.99 million ($990,000)

sale value - net value = gain on sale.

$1,120,000 - $990,000= $130,000.

Accumulated depreciation is the amount of depreciation that has been applied to an asset up to a specific point. The beginning cumulative depreciation balance is increased with each period's depreciation sale value. Known as a long-term contra asset account, accumulated depreciation is an asset account with a credit balance that is shown on the balance sheet under the heading Property, Plant, and Equipment. the sum of money that has been set aside from the cost of a long-term asset's acquisition.

To learn more about depreciation, click here.

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