Piece of equiipment has depreciate

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Reference no: EM131343861

A piece of equiipment has depreciate to $3,000, but it sells for $1,000 at an auction. Which of the following consequences is MOST accurate?

A. The firm must pay taxes on the selling price of $1,000

B. The firm can write-off the equipment as a charitable donation since the sellling price is less than one-tenth of the original cost of equipment.

C. The firm must pay taxes on the selling price less the remaining depreciatio costs, $2,000.

D. The firm can document the sale as a capital loss.

Reference no: EM131343861

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