Sunday, April 13, 2008

Calculate Gain or Loss on Sale

A Internet Hosting Service purchased a computer (equiptment) on January 1, 2001 for $170,000, with an estimated life of 8 years and a residual value of $10,000. On July 1, 2007, the computer is sold for $30,000 cash. Calculate the loss or gain on the sale.



Answer:
$10,000 LOSS

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