On December 31, Strike Company Has Decided to Sell One

question 151

Multiple Choice

On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $310,000 with an accumulated depreciation of $260,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $20,000. What is the amount of the gain or loss on this transaction?

• A) Gain of $20,000
• B) Loss of $30,000
• C) No gain or loss
• D) Cannot be determined

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