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On May 1, 2015, Casico Toy Inc. purchased a new piece of equipment that cost $52,000. The estimated useful life is five years and the estimated residual value is $ 4,000. During the five years of useful life the equipment is expected to produce 20,000 units.
If Casico Toy Inc. uses the straight line method of depreciation and sells the equipment for $ 15,500 on May 1st, 2018. What will be the realized gain (loss)?
$ 25,200$9,700None of the other alternatives are correct$ 3,700$ (3,700)
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