Gain or Loss on Sale of Equipment Assume that Gonz Company purchased an asset on January 1, 2015, for $80,000. The asset had an estimated life of ten years and an estimated residual value of $10,000. The company used the straight-line method to depreciate the asset. On December 31, 2017 the asset had a net book value of $59,000. It was sold on that day for $53,000 cash. 1 Record the gain or loss on sale. Hint remove the accumulated depreciation related to the equipment off of the books remove the acquisition equipment cost from the books - It has been sold record the cash received for the sale the difference is the gain or loss Test Prove Your Journal Entry Historical cost (Accumulated depreciation) Net book value (Selling price) (Gain) or loss on sale Capitalization SL DDB GainLoss