The firm PizzaToGo has a truck which was purchased for $80,000 and was depreciated $3,000 per year for the first five years. At the beginning of year 6 the firm impairs the machine by $7,000 and sometime thereafter they sell the machine for $55,000 in cash.

What's the Gain or Loss on the sale?

What are the financial statement effects of the sale?

Assets	=	Liabilities	+	Equity		Sales	-	Expenses	=	Profit