Calculate the amount of loss recorded on sale of building

Reference no: EM131881141

Problem

On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $80,000; building $200,000; equipment $120,000. Before the property could be used, XYZ Company had to spend $6,000 to put the equipment in working order. The building was assigned a useful life of 25 years with a $4,000 salvage value. The building will be depreciated using the straight-line method. On August 1, 2028, XYZ Company sold the building for $108,000 cash. Calculate the amount of the loss recorded on the sale of the building. Enter your answer as a number (i.e., 2,000). Do not use a minus sign, decimals, or type the word loss after your answer.

Reference no: EM131881141

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