5.5. A corporation sold a piece of equipment during the current tax year for $78,600. The accounting records show that its initial cost was $190,000 and the accumulated depreciation charges were $139,200. Based on this information, what is the gain or loss on disposal? (a) A loss of $111,400 (b) A loss of $27,800 (c) A gain of $50,800 (d) A gain of $27 800
5.5. A corporation sold a piece of equipment during the current tax year for $78,600. The accounting records show that its initial cost was $190,000 and the accumulated depreciation charges were $139,200. Based on this information, what is the gain or loss on disposal? (a) A loss of $111,400 (b) A loss of $27,800 (c) A gain of $50,800 (d) A gain of $27 800
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:5.5. A corporation sold a piece of equipment during the current tax year for $78,600. The accounting records
show that its initial cost was $190,000 and the accumulated depreciation charges were $139,200. Based on
this information, what is the gain or loss on disposal?
(a) A loss of $111,400
(b) A loss of $27,800
(c) A gain of $50,800
(d) A gain of $27,800
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