Question
a company sold a machine for $15,000 in cash. the machine originally cost $38,000 and accumulated depreciation was $20,000. whats the gain or loss on the sale of machinery
Answers
GPT 3.5
To calculate the gain or loss on the sale of machinery, we need to first determine the book value of the machinery.
Book value = Original cost - Accumulated depreciation
Book value = $38,000 - $20,000
Book value = $18,000
Now, we can calculate the gain or loss on the sale of machinery:
Sale price = $15,000
Book value = $18,000
Gain/Loss = Sale price - Book value
Gain/Loss = $15,000 - $18,000
Gain/Loss = -$3,000
Therefore, there is a loss of $3,000 on the sale of the machinery.
Book value = Original cost - Accumulated depreciation
Book value = $38,000 - $20,000
Book value = $18,000
Now, we can calculate the gain or loss on the sale of machinery:
Sale price = $15,000
Book value = $18,000
Gain/Loss = Sale price - Book value
Gain/Loss = $15,000 - $18,000
Gain/Loss = -$3,000
Therefore, there is a loss of $3,000 on the sale of the machinery.