Equipment to be sold has a book value of $4,000

Equipment to be sold has a book value of $4,000 The cost of the equipment is $10,000 The cash received at sale is $2,000 What is the gain or loss on disposal of the equipment?

a. Loss on disposal of $6,000.

b. Gain on disposal of $2,000.

c. Loss on disposal of $4,000.

d. Loss on disposal of $2,000.


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