Summit Industries disposed of office equipment that originally cost $35,000. The equipment had accumulated depreciation of $28,000 at the time of disposal, and Summit received $5,000 for the equipment. What was the gain or loss on this disposal?
Summit Industries disposed of office equipment that originally cost $35,000. The equipment had accumulated depreciation of $28,000 at the time of disposal, and Summit received $5,000 for the equipment. What was the gain or loss on this disposal?
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 32CE
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Please provide the solution to this general accounting question using proper accounting principles.
Transcribed Image Text:Summit Industries disposed of office equipment that originally cost
$35,000. The equipment had accumulated depreciation of $28,000
at the time of disposal, and Summit received $5,000 for the
equipment. What was the gain or loss on this disposal?
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