On January 1, 2012, A&G Company pays $40,000 for equipment with a 10-year estimated life and a

Question:

On January 1, 2012, A&G Company pays $40,000 for equipment with a 10-year estimated life and a $5,000 estimated . On January 1, 2016, A&G sells the equipment for $18,500.
Required
Calculate the gain or loss on the sale assuming A&G uses the straight-line method of depreciation. Where should the gain or loss on the sale be presented on the income statement? Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...