Equipment originally costing $95,000 has accumulated depreciation of $30,000. If the equipment is sold for $55,000, the company should record a. No gain or loss.b. A gain of $10,000.c. A loss of $10,000.d. A loss of $40,000.

Equipment originally costing $95,000 has accumulated depreciation of $30,000. If the equipment is sold for $55,000, the company should record a. No gain or loss.b. A gain of $10,000.c. A loss of $10,000.d. A loss of $40,000.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 2CE

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Question

Equipment originally costing $95,000 has accumulated depreciation of $30,000. If the equipment is sold for $55,000, the company should record
a. No gain or loss.
b. A gain of $10,000.
c. A loss of $10,000.
d. A loss of $40,000.

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