Blue Ridge Explorers Inc. sold equipment purchased on January 1, 2015, for $65,000. The equipment had a 5-year life, no salvage value, and was depreciated using straight-line. It was sold on January 1, 2019 for $18,000. What is the gain or loss on sale?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 32CE
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I need guidance with this financial accounting problem using the right financial principles.

Blue Ridge Explorers Inc. sold equipment
purchased on January 1, 2015, for $65,000.
The equipment had a 5-year life, no salvage value,
and was depreciated using straight-line.
It was sold on January 1, 2019 for $18,000.
What is the gain or loss on sale?
Transcribed Image Text:Blue Ridge Explorers Inc. sold equipment purchased on January 1, 2015, for $65,000. The equipment had a 5-year life, no salvage value, and was depreciated using straight-line. It was sold on January 1, 2019 for $18,000. What is the gain or loss on sale?
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