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A company sells equipment for $4,000. the original cost was $50,000.the accumulated depreciation is $45,000. the sale results in what?A. a loss of $4000B. a loss of $1000

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ANSWER

Loss of $1000

EXPLANATION

Cost is $50000

The less accumulated depreciation is $45000

Hence, the book value on data on sale;

[tex]\begin{gathered} 50000-45000 \\ =5000 \end{gathered}[/tex]

Gain or loss on sale = Sale value - Book value;

[tex]\begin{gathered} 4000-5000 \\ =-1000 \end{gathered}[/tex]

Therefore a loss

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