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GreenTech Industries disposed of an asset at the end of the sixth year of its estimated life for $15,000 cash. The asset's life was originally estimated to be 8 years. The original cost was $60,000, with an estimated residual value of $8,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?

GreenTech Industries disposed of an asset at the end of the sixth year of its estimated life for $15,000 cash. The asset's life was originally estimated to be 8 years. The original cost was $60,000, with an estimated residual value of $8,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?

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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GreenTech Industries disposed of an asset at the end of the sixth year of its estimated life for $15,000 cash. The asset's life was originally estimated to be 8 years. The original cost was $60,000, with an estimated residual value of $8,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?
Transcribed Image Text:GreenTech Industries disposed of an asset at the end of the sixth year of its estimated life for $15,000 cash. The asset's life was originally estimated to be 8 years. The original cost was $60,000, with an estimated residual value of $8,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?
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