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.
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
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