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A company sold a piece of equipment for $30,000 that had originally cost $60,000. It had accumulated depreciation of $27,500 at the time of sale.

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A company sold a piece of equipment for $30,000 that had originally cost $60,000. It had accumulated depreciation of $27,500 at the time of sale. What is the amount of gain or loss that would be recognized on the transaction? 1) Loss of $2,500. 2) Gain of $2,500. 3) Gain of $30,000. 4) Loss of $32,500

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