1. The RM of Bismarck is looking to sell a piece of equipment in 2010 that they purchased in 2004 for $54,321. When the purchase was completed in 2004, the RM administrator set the asset's useful life at 10 years and a residual value of $5,000. the RM of Bismarck's TCA policy states that the municipality uses straight line depreciation to calculate their annual amortization charge. If the RM anticipates a sale price of $30,947 in 2010, what is the anticipated gain or loss on the sale of the asset?

2. The RM of Bismarck is looking to sell a piece of equipment in 2010 that they purchased in 2004 for $54,321. When the purchase was completed in 2004, the RM administrator set the asset's useful life at 10 years and a residual value of $5,000. the RM of Bismarck's TCA policy states that the municipality uses straight line depreciation to calculate their annual amortization charge. If the RM anticipates a sale price of $20,000 in 2010, what is the anticipated gain or loss on the sale of the asset?

Answer rating: 100% (QA)

1 To calculate the anticipated gain or loss on the sale of the asset we need to compare the sale pri... View the full answer