On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000and accumulated depreciation of $ 60000. The company uses the straight linemethod. The equipment has a useful life of 10 years and a residual value of $30000. The equipment was sold on July 1, year 1 for $ 150000.Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as apositive amount below (i.e. 20000). If the amount is a loss, enter the answer asnegative amount below (i.e. -20000). Round your final answer to the nearest dollar.

The objective of the question is to calculate the gain or loss on the disposal of a piece of…

Answered: On January 1, year 1 ABC. Ltd. had a…

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 January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
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