Nike owns equipment that cost $101,900 with accumulated depreciation of $69,600. Nike asks $37,100 for the equipment but sells the equipment for $34,400. Compute the amount of gain or loss on the sale. Multiple Choice $2,100 loss. $2,700 gain. $4,800 loss. $4,800 gain. $2,100 gain.
5 (1 star)
The gain on the equipment sold by Nike after comparing the sale price with the book value of the equipment is $2100.
What is the gain on the equipment?
A gain is recorded when the equipment is sold for greater than its book value. The book value is the cost of the equipment less the accumulated depreciation.
Book value = $101,900 - $69,600 = $32,300
Gain = $34,400 - $32,300 = $2100
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