A company discarded a computer system originally purchased for $18,000. the accumulated depreciation was $17,200. the company should recognize a (an) : $0 gain or loss. $800 loss. $800 gain. $8,000 loss. $7,200 loss.

Question

Mathematics

Alice Flynn

16 September, 12:42

A company discarded a computer system originally purchased for $18,000. the accumulated depreciation was $17,200. the company should recognize a (an) : $0 gain or loss. $800 loss. $800 gain. $8,000 loss. $7,200 loss.

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Moses Logan · Answer 1

The amount that is gained/lost by the company is equal to the difference between the accumulated depreciation and original cost of the computer system. That is,

gain/loss = 17,200 - 18,000

gain/loss = - 800

Thus, the company lost 800 because it was not able to maximize the usage of the computer system.