What is the amount of the gain or loss on this transaction?
Strike company sold one of its batting cages for $20,000. The equipment had an initial cost of $310,000 and had
Depreciation - This is the Method to Expense for using the asset during the period for the business purpose.
Accumulated Depreciation - This is the total of the depreciation already expensed in the income Statement.
Book Value = Initial cost - Accumulated Depreciation
Gain or loss = Sales Value - Book Value
If the sales value is more than book value then its a gain and if the sales value is less than the book value then its a loss.
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