On January 1, 20X5, Pastel Colors Corporation purchased drilling equipment for $11,500. The equipment had an estimated useful life of four years and a salvage value of $500. Assuming that Pastel Colors uses the straight-line method of depreciation. On July 1, 20X7, Pastel sells the equipment for $4,000. What amount of gain or loss would Pastel record on the sale of the drilling equipment? 

Answer rating: 100% (QA)

To calculate the gain or loss on the sale of the drilling equipment we need to first calculate the d... View the full answer