Question

Loma Linda, Inc. sells a long-lived asset that originally cost $206,000 for $56,000 on December 31, 2018. The Accumulated Depreciation account had a balance of $113,000 after the current year's depreciation of $45,600 had been recorded. The company should recognize a:

Answer 1

Answer:

$37,000

Explanation:

Loma Linda, Inc

GBV = $206,000

Accumulated Depreciation = $113,000

Net Book Value=( $206,000 -$113,000)

=$93,000

Since long-lived asset originally cost $206,000 for $56,000

Hence,

The loss will be

$93,000 -$56,000

=$37,000

Therefore the company should recognize a: loss on disposal of $37,000