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Koch Company owns equipment that cost $100,000 when purchased on January 1, 2007. It has been depreciated using the straight-line method based on estimated salvage value of $10,000 and an estimated useful life of 5 years.
Instructions
Problem 1: Calculate the gain/loss for the sale of the equipment in these four independent situations.
(a) Sold for $56,000 on January 1, 2010.(b) Sold for $56,000 on May 1, 2010.(c) Sold for $22,000 on January 1, 2010.
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