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On december 31, strike company sold one of its batting cages for $50,000. the equipment had an original cost of $310,000 and has accumulated depreciation of $260,000. depreciation has been recorded up to the end of the year. what is the amount of the gain or loss on this transaction? no gain or loss cannot be determined gain of $50,000 loss of $50,000

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moedlmichele
No gain or loss can be determined

Answer:

No gain or loss

Explanation:

Original cost : $310,000.

Accumulated deprecation :$260,000.00

Book value as at disposal : $50,000.00

Disposal value : $50,000

Gain / Loss : None.

Accumulated depreciation is total depreciation charged on an asset up to a particular reporting period . This is deducted from the original cost to derive the value of the asset at disposal.

As gain or loss is the difference in the selling and the book value of an asset , in this situation that it was sold at the book value cost , there is no loss or gain

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