ABC Co has equipment that was purchased in 2020 costing $30,000. The equipment has no salvage value and a 5 year useful life. The current balance in accumulated depreciation is $24,000. ABC sells the equipment for $8,000 cash. What is the amount of the gain, if any, on the disposal of the equipment?

ABC Co has equipment that was purchased in 2020 costing $30,000. The equipment has no salvage value and a 5 year useful life. The current balance in accumulated depreciation is $24,000. ABC sells the equipment for $8,000 cash. What is the amount of the gain, if any, on the disposal of the equipment?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

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