A copy machine cost $ 48 comma 000 when new and has accumulated depreciation of $ 31 comma 000. Suppose Kinko sold the machine for $ 17 comma 000. What is the result of this disposal transaction?

The result of the disposal transaction is neither a loss or a profit

Explanation:

The expression for the book value is as shown;

B. V=P. C-A. D

where;

B. V=book value

P. C=purchase cost

A. D=accumulated depreciation

In our case;

B. V=unknown

P. C=$48,000

A. D=$31,000

replacing;

Book value=48,000-31,000=$17,000

The profit or loss from the sale of the machine, can be expressed as;

profit/loss=sales price-book value

where;

sales price=17,000

book value=17,000

profit/loss=17,000-17,000=0

The result of the disposal transaction is neither a loss or a profit