Solve: Equipment was purchased for $60,000 on January 1, 2021. Its estimated useful...
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Equipment was purchased for $60,000 on January 1, 2021. Its estimated useful life was six years, and its residual value was zero. The straight-line method of depreciation was used and the company's fiscal year is the calendar year. The equipment was sold for $50,000 on June 30,2022 . Prior to selling, the accumulated depreciation was $10,000. What is the amount of gain or loss on the sale of the equipment? - A) $5,000 gain B) $10,000 loss C) $5,000 loss D) No gain or loss
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Equipment was purchased for $60,000 on January 1, 2021. Its estimated useful life was six years, and its residual value was zero. The straight-line method of depreciation was used and the company's fiscal year is the calendar year. The equipment was sold for $50,000 on June 30,2022 . Prior to selling, the accumulated depreciation was $10,000. What is the amount of gain or loss on the sale of the equipment? - A) $5,000 gain B) $10,000 loss C) $5,000 loss D) No gain or loss
