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    BABYBOY18's Avatar
    BABYBOY18 Posts: 1, Reputation: 1
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    #1

    Jan 30, 2007, 12:53 PM
    Accounting 102
    A piece of equipment with a book value of $5000 is sold for $3000. What is the amountof gainor loss on the sale? Show me how to get this answer
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jan 30, 2007, 09:39 PM
    Dr. Cash 3,000
    Cr. Equipment 5,000

    Since you made no reference to depreciation, I will assume there is none.

    Plug the difference, Dr. Loss 2,000

    You can also think about it logically. If I sell something that is worth $5,000 for only $3,000, then I sold it for $2,000 less than what its worth, therefore I lost $2,000.
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