On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 160000 and accumulated depreciation of $ 30000. The company uses the straight line method. The equipment has a useful life of 15 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 90000.

Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.

Answer rating: 100% (QA)

To calculate the gain or loss on disposal we need to first calculate the book value of the ... View the full answer