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On July 1, 2016, Planet Communications purchased a new piece of equipment that cost $25,000. The estimated useful life is 10 years and estimated residual
On July 1, 2016, Planet Communications purchased a new piece of equipment that cost $25,000. The estimated useful life is 10 years and estimated residual value is $4,000. Assume that Planet uses the straight-line method of depreciation and sells the equipment for $20, 600 on July 1, 2020. The result of the sale of the equipment is a gain (loss) of A. ($800). B. $5, 600. C. $4,000. D. $0
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