Problem 1.

Doster Caf sold two pieces of equipment during 20x2. Calculate the gain or loss on the sale of each of the following items.

Relevant information is as follows:

Net book value = original cost accumulated depreciation

• Sale of range

Selling price = $500

Original cost = $3,000

Accumulated depreciation = $2,700

• Sale of van

Selling price = $3,500

Original cost = $20,000

Accumulated depreciation = $15,000