On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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