Tony Company sells equipment for $20,000 cash. The equipment has a historical cost of $63,000 and accumulated depreciation of $54,000. What is the gain or loss on sale of the equipment? A. $20,000 gain B. $11,000 gain C. $11,000 loss D. $20,000 loss

Tony Company sells equipment for $20,000 cash. The equipment has a historical cost of $63,000 and accumulated depreciation of $54,000. What is the gain or loss on sale of the equipment? A. $20,000 gain B. $11,000 gain C. $11,000 loss D. $20,000 loss

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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Question

Tony Company sells equipment for $20,000 cash. The equipment has a historical cost of $63,000 and accumulated depreciation of $54,000. What is the gain or loss on sale of the equipment?

$20,000

gain

$11,000

gain

$11,000

loss

$20,000

loss

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