Calculate the gain or loss on disposal

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Problem - On January 1, year 1, ABC Ltd. purchased a piece of equipment with a cost of $ 140000. The equipment has a useful life of 15 years and a residual value of $ 15000 and is being depreciated under the straight line method. The equipment was sold on July 1, year 5 for $ 110000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000).

Reference no: EM132750043

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