Question 9

On January 1, 2009,Sheridan Companypurchased for $750000, equipment having a useful life of ten years and an estimated salvage value of $46800.Sheridanhas recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2017, the equipment was sold for $117500. As a result of this sale,Sheridanshould recognize a gain of

a)$47180.

b)$380.

c)$0.

d)$11750