Question
A company has old equipment that originally cost $67,500. The equipment was purchased seven years ago, at which time it had an estimated useful life
A company has old equipment that originally cost $67,500. The equipment was purchased seven years ago, at which time it had an estimated useful life of 10 years and a residual value of $5,200. The straight-line method of depreciation was selected. As of its last year end, December 31, the balance of the assets accumulated depreciation was $43,610. The equipment was sold on August 1 of the current year for $25,300. Select the correct responses for the following:
1. Equipments depreciation expense for the year of sale: Answer$3,634$3,480$3,772$3,789$3,501
2. Equipments carrying amount on the date of sale: Answer$50,437$19,942,$20,397$20,256$20,405
3. Was there a gain or loss on equipment sale? AnswerGain on saleLoss on sale
4. Amount ($) of the gain or loss on sale: Answer$5,044$4,842$7,789$4,962$5,106
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