Question

Equipment originally costing $100,000 has accumulated depreciation of $65,000. if it is sold for $40,000, the company should record:

Answer 1

Hi there
What we need first is the book value of the equipment
The book value is
originally costing - accumulated depreciation
100,000−65,000=35,000

Since the sale price is 40000 and the book value is 35000 This result a gain of 5000 (40000-35000)

Good luck!