Question

granite stone creamery sold ice cream equipment for $15,600. granite stone originally purchased the equipment for $89,000, and depreciation through the date of sale totaled $70,500. what was the gain or loss on the sale of the equipment?

Answer 1

The sale on ice cream equipment made a loss of $2900.

Given,

The selling price of ice cream equipment = $15,600

The cost price of the ice cream equipment = $89,000

Depreciation through the date of sale = $70,500

We have to find the gain or loss on the sale of the equipment

Here,

Book value of the equipment = cost price - depreciation

Book value = 89,000 - 70,500 = $18,500

Next,

Gain or loss on the sale of the equipment;

As the cost price is greater than selling price, the sale is definitely loss.

So,

loss = selling price - book value

loss = 15,600 - 18,500 = -2900

That is,

The sale on ice cream equipment made a loss of $2900.

Learn more about gain/loss in sale here;

https://brainly.com/question/17187108

#SPJ1