Question
Erin has equipment with a historical cost of $22,000 and accumulated depreciation of $10,000. If Erin sells the equipment and receives $13,000 cash for the
Erin has equipment with a historical cost of $22,000 and accumulated depreciation of $10,000. If Erin sells the equipment and receives $13,000 cash for the sale, what will be the effect of the sale on Erins net income (ignoring taxes)?
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Loss of $1,000
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Gain of $1,000
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Loss of $9,000
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Gain of $9,000
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Loss of $12,000
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Gain of $12,000
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Financial & Managerial Accounting
Authors: Carl S. Warren
10th Edition
0324663811, 9780324663815
