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a. gain of $2,000.
b. gain of $700.
c. loss of $700.
d. loss of $1,300.
Yes, Option B is the right answer.
B-----------------------------------
B) Gain of $700. This is how the disposal account will look like
b. gain of $700.
Cause after depreciation, value of the equipment is only $1300. selling the equipment for $2000 is gain of $700. Thanks
ANSWER b GAIN700 ------------------------------------------
The answer would result in a gain of $700 ($6,700+$2,000-$8000)
The answer is B. gain of $700
Book Value: $8,000 - $6,700 = $1,300
Therefore gain on sale is $2,000 -1,300 equals $700
purchase8,000 - depreciation of6,700 =1,700 rest value sold for2,000 =700 gain
It would result to a b. gain of $700....
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