On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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Question
![On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000
and accumulated depreciation of $ 60000. The company uses the straight line
method. The equipment has a useful life of 10 years and a residual value of $
30000. The equipment was sold on July 1, year 1 for $ 150000.
Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a
positive amount below (i.e. 20000). If the amount is a loss, enter the answer as
negative amount below (i.e. -20000). Round your final answer to the nearest dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e2d6d9a-4f44-4519-8acd-44b754d756dc%2Ff1a7140e-7150-4d0c-addc-c6b71a9fc768%2Fvhcq20s_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000
and accumulated depreciation of $ 60000. The company uses the straight line
method. The equipment has a useful life of 10 years and a residual value of $
30000. The equipment was sold on July 1, year 1 for $ 150000.
Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a
positive amount below (i.e. 20000). If the amount is a loss, enter the answer as
negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
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