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Marquez purchased some equipment for $58,750 on August 15, 2018.

He decided he did not need the equipment so he sold it on June 13, 2019 for $56,500.

The equipment was subject to depreciation of $6,964 for 2018 and 2019.

What gain or loss will Marquez recognize on the sale of the equipment?

Respuesta :

Answer:

$4,714

Explanation:

Given that,

Cost of equipment = $58,750

Equipment was subject to depreciation of $6,964 for 2018 and 2019.

Sale value of equipment = $56,500

Net book value = Cost of equipment - Depreciation

                          = $58,750 - $6,964

                          = $51,786

Capital gain = Net book value - Sale value

                    = $51,786 - $56,500

                    = $4,714

Therefore, the Marquez recognize a gain of $4,714 on the sale of the equipment.

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