HH Co. purchased equipment at the beginning of 2020 for $53,000 with an estimated residual value of $5,300 that it has depreciated for the past 2 full years using the double-diminishing-balance method at a rate of 40%. They sold the equipment at the beginning of 2022 for $21,200 cash. (a) Determine the amount of the gain or loss on the disposal of the equipment.

HH Co. purchased equipment at the beginning of 2020 for $53,000 with an estimated residual value of $5,300 that it has depreciated for the past 2 full years using the double-diminishing-balance method at a rate of 40%. They sold the equipment at the beginning of 2022 for $21,200 cash. (a) Determine the amount of the gain or loss on the disposal of the equipment.

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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