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1 April, 21:03

Greg sold some equipment for $72,510 on June 13, 2019. Greg had originally purchased the equipment for $86,750 on November 21, 2018. The equipment was subject to depreciation of $17,350. What gain or loss will Greg recognize on the sale

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  1. 2 April, 00:55
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    capital gain = $3110

    Explanation:

    given data

    sold equipment = $72,510

    originally purchased equipment = $86,750

    depreciation = $17,350

    solution

    first we get here Book value of Equipment that is express as

    Book value of Equipment = original cost of equipment - depreciation ... 1

    Book value of Equipment = $86750 - $17350

    Book value of Equipment = $69400

    so we get here gain that is express as

    capital gain = sale of equipment - book value ... 2

    capital gain = $72510 - $69400

    capital gain = $3110
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