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granite stone creamery sold ice cream equipment for $13,600. granite stone originally purchased the equipment for $84,000, and depreciation through the date of sale totaled $68,000. what was the gain or loss on the sale of the equipment?

Answer :

Ice cream-making supplies were sold by granite stone creamery for $13,600. Granite Stone paid $84,000 for the equipment initially, and $68,000 in depreciation up until the date of sale., then $3,400 was lost when the equipment was sold.

We first determine the equipment's book value.

Asset cost: $84,000

Depreciation over time equals $68,000.

Cost of the asset - accumulated depreciation is a formula for book value,

$84,000 - $68,000= $16,000

Therefore, Gain or Loss on the Asset: Equipment Sale Value = $13,600

The equipment has a book value of $16,000.

Equipment loss = sale value - book value,

$13,600 -$16,000 = - $3,400. Here, a -ve sign indicates a loss

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