Account for disposal of an asset. (LO 5)

Kat \& Jen's Solar Tan disposed of a high-pressure tanning bed that had been used in the business for 3 years. The records of the company provide the following information:

Calculate the gain or loss on the disposal of the tanning bed for each of the following independent situations:

a. Kat \& Jen's sold the tanning bed to Dark Bodies for \(\$ 21,000\).

b. Kat \& Jen's sold the tanning bed to a customer for \(\$ 22,550\).

c. Kat \& Jen's sold the tanning bed to Angela's Fitness Center for \(\$ 18,000\).

d. The tanning salon was broken into and the tanning bed was stolen; Kat \& Jen's had no insurance.

Transcribed Image Text:

High-pressure tanning bed Accumulated depreciation $39,000 18.000