Ask Experts Questions for FREE Help !
Ask
    ylujan's Avatar
    ylujan Posts: 10, Reputation: 1
    New Member
    		  
    #1

    Oct 4, 2010, 05:14 PM
    Gain or Loss
    A company discarded a display case it had originally purchased for $11,000. The case had $9,000 worth of accumulated depreciation. The company should recognize a (an):
    $2,000 gain
    $2,000 loss
    $11,000 loss
    $9,000 loss
    $0 gain or loss
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Oct 4, 2010, 05:18 PM

    First you need to calculate the net book value, which is Cost of $11,000 minus Accumulated Depreciation of $9,000 equals $2,000

    Being the case is worth $2,000 and you discarded it, which means that you have a loss of $2,000
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Gain or Loss on trade in of vehicles [ 21 Answers ]

the book value of 2 trucks is 15,679 with loan balances of 43,669. Dealership's gross allowance is 39,000 and the cost of the new vehicle is 29,700. Amount financed for new vehicle is 26,186. Dealership pays of outstanding debt on old vehicles. Would you realize a gain on this trade? What would...

Gain or loss [ 1 Answers ]

Discarded a delivery truck that was purchased on January 1, 2004. The truck cost $41,900. It was depreciated based on a 6-year useful life with a $3,600 salvage value.

Gain or loss [ 2 Answers ]

buy equipment then depriciate it,has no salvage value then you sell it. Determine weather it's a gain or a loss.---- that's how it was said on our study guide and I didn't really understand it?

View more questions Search