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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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
Transcribed Image Text: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?
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