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5 April, 19:54

On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction

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  1. 5 April, 22:17
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    Gain/loss = 0

    Explanation:

    Giving the following information:

    On December 31, Strike Company sold one of its batting cages for $219,597. The equipment had an original cost of $258,350 and has accumulated depreciation of $38,753.

    First, we need to determine the book value:

    Book value = original cost - accumulated depreciation

    Book value = 258,350 - 38,753 = 219,597

    The gain or loss from selling an asset depends on selling it for a higher or lower value than the book value.

    Gail/loss = 219,597 - 219,597

    Gain/loss = 0
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