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10 August, 22:17

On December 31, Strike Company sold one of its batting cages for $193,460. The equipment had an original cost of $227,600 and has accumulated depreciation of $34,140. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction

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  1. 10 August, 23:25
    0
    No loss No profit

    Explanation:

    Given:

    Original cost of equipment = $227,600

    Selling amount = $193,460

    Accumulated depreciation = $34,140

    Computation of profit or loss on sales:

    Original cost of equipment after deducting depreciation = Original cost of equipment - Accumulated depreciation

    = $227,600 - $34,140

    = $193,460

    Profit or loss = Selling amount - Original cost of equipment after deducting depreciation

    = $193,460 - $193,460

    = $0
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