A company sold a machine for $15,000 in cash The machine originally cost $38,000 and accumulated depreciation was $20,000. What’s the gain or loss on the sale of machinery? a $3,000 gain. b $3,000 loss. c $15,000 gain. d $18,000 loss.

Accumulated depreciation refers to the total amount of depreciation that is charged on the purchase price of a fixed asset. If a separate accumulated depreciation account is prepared, the machine continues to reflect its purchase price in the books. Study the accumulated https://online-accounting.net/ depreciation definition and understand how it works with an example. See how to find accumulated depreciation using the formula. The security system for this website has been triggered. Completing the challenge below proves you are a human and gives you temporary access.

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Recent Questions in Financial Accounting

A company sold a machine for $15,000 in cash. The machine originally cost $38,000 and accumulated depreciation was $20,000. The machine originally cost $35,000 in 2018 and $8,000 was spent on a major overhaul in 2021 (charged to the Equipment account). Accumulated Depreciation 7 main types of business activities carried out by organizations on the machine to the date of disposal was $28,000. Prepare the appropriate journal entry to record the disposition of the machine. The gain or loss on the asset is the difference between the cash received on the sale of an asset and the book value of an asset.

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• The machine originally cost $38,000 and accumulated depreciation was $20,000.
• Accumulated Depreciation on the machine to the date of disposal was $28,000.