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Bateman Corporation sold an office building that it used in its business for $800,950. Bateman bought the building ten years ago for $599,525 and has claimed $201,425 of depreciation expense. What is the amount and character of Bateman's gain or loss?

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federicoceverino

Answer:

The amount of Bateman's gain is $402,850, in character of profits from the sale of property and equipment

Explanation:

The gain of selling an asset is determined by the formula: Sale price minus Book value. The book value of the building is Cost minus accumulated depreciation. So, the book value is [tex]599,525 - 201,425 = 398,100[/tex]

Then, the amount of Bateman's gain is equal to [tex]800,950 - 398,100 = 402,850[/tex].

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