Question
Amazon sold equipment for $30,000 cash. The equipment originally cost $40,000 and had accumulated depreciation of $15,000. Calculate the gain or loss on the sale
Amazon sold equipment for $30,000 cash. The equipment originally cost $40,000 and had accumulated depreciation of $15,000. Calculate the gain or loss on the sale of the equipment and provide the journal entry to record the transaction.
Requirements:
- Calculate the gain or loss on the sale of equipment.
- Provide the journal entry to record the sale of the equipment.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
