On 1/1/X2, Hudson Enterprises decided to sell equipment it had been using in its business for $25,000 cash. The following data are available for the equipment as of the disposal date:Cost$200,000Original estimated residual value25,000Accumulated Depreciation as of 12/31/X1160,000Question: How much gain or loss should be recorded on the sale of this asset?Answer: The company should report a _____ (gain or loss) of $ ___

The depreciation is charged on asset so at to reduce the book value of fixed asset with passage of…

Answered: On 1/1/X2, Hudson Enterprises decided…

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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On 1/1/X2, Hudson Enterprises decided to sell equipment it had been using in its business for $25,000 cash. The following data are available for the equipment as of the disposal date:

Cost	$200,000
Original estimated residual value	25,000
Accumulated Depreciation as of 12/31/X1	160,000

Question: How much gain or loss should be recorded on the sale of this asset?

Answer: The company should report a _____ (gain or loss) of $ ___

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