On December 31, Strike Company Has Decided to Trade-In One

question 126

Multiple Choice

On December 31, Strike Company has decided to trade-in one of its batting cages for another one that has a cost of $500,000. The seller of the batting cage is willing to allow a trade-in amount of $11,000. The initial cost of the old equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction?

• A) Loss of $11,000
• B) Gain of $11,000
• C) Loss of $19,000
• D) No loss or gain will be recorded.

---

Definitions:

2° Amine

A type of amine where the nitrogen atom is attached to two alkyl or aryl groups and one hydrogen atom.

Compound

A compound is a substance formed when two or more chemical elements are chemically bonded together.

Organic Product

A compound resulting from an organic reaction, often characterized by carbon-based structures.

Reaction

A procedure where compounds react to create new materials that have different characteristics.