On December 31, Ace Fitness Centre decided to sell one of its treadmills. The initial cost of the equipment was $150,000, and the accumulated depreciation recorded on the equipment was $120,000. Depreciation has been recorded through the end of the year. The equipment was sold for $25,000. What is the amount of the gain or loss on this transaction? a. Gain of $5,000 b. Loss of $5,000 c. No gain or loss d. Cannot be determined
On December 31, Ace Fitness Centre decided to sell one of its treadmills. The initial cost of the equipment was $150,000, and the accumulated depreciation recorded on the equipment was $120,000. Depreciation has been recorded through the end of the year. The equipment was sold for $25,000. What is the amount of the gain or loss on this transaction? a. Gain of $5,000 b. Loss of $5,000 c. No gain or loss d. Cannot be determined
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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Please help me solve this general accounting question using the right accounting principles.
Transcribed Image Text:On December 31, Ace Fitness Centre decided to sell one of its
treadmills. The initial cost of the equipment was $150,000, and the
accumulated depreciation recorded on the equipment was $120,000.
Depreciation has been recorded through the end of the year. The
equipment was sold for $25,000.
What is the amount of the gain or loss on this transaction?
a. Gain of $5,000
b. Loss of $5,000
c. No gain or loss
d. Cannot be determined
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