The Balance of Accumulated Depreciation on January 1 and December

question 33

Essay

The balance of accumulated depreciation on January 1 and December 31, 2017 is $54,000 and $58,000, respectively. During 2017, depreciation expense is $18,000, and equipment with a cost of $20,000 is sold for $4,000. Calculate the loss or gain from the sale of equipment.

---

Definitions:

Good

An item or service that satisfies a want or need and is available for sale or exchange in the market.

Maximizing Utility

The economic principle that individuals or firms seek to achieve the highest level of satisfaction or benefit from their choices.

Marginal Utility

The increased enjoyment or value gained by a consumer from consuming an extra unit of a good or service.

Price

The amount of money required to purchase a good or service, which is determined by supply and demand.