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Question - Jacobsen Co. disposed an equipment at the end of the year. The original cost of the equipment was $120,000 with an estimated residual value of $27,000 and it was being depreciated under the units of production method.
The expected useful life was 3,000 units and the units produced until the date of disposal was 1,700 units. The equipment was sold for $70,000 in cash.
What was the gain or loss on the disposal at the end of the year?
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