On October 1, 2016, Wireless Communications purchased a new piece of equipment that cost $45,000. The estimated
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Question:
On October 1, 2016, Wireless Communications purchased a new piece of equipment that cost $45,000. The estimated useful life is 10 years and estimated residual value is $2,000. Assume that Wireless uses the straight-line method of depreciation and sells the equipment for $33,800 on October 1, 2020. The result of the sale of the equipment is a gain (loss) of
A. $2,000.
B. $0.
C. ($10,400)
D. $6,000.
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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