On december 31, strike company sold one of its batting cages for $20,000. the equipment had an initial cost of $310,000 and had accumulated depreciation of $260,000. depreciation has been recorded up to the end of the year. what is the amount of the gain or loss on this transaction?

loss  = $30000

Explanation:

given data

batting cages = $20,000

initial cost = $310,000

accumulated depreciation = $260,000

to find out

the amount of the gain or loss on this transaction

solution

we find here book value as that on the date of sale is here

book value = initial cost - accumulated depreciation      1

put here value we get

book value = $310,000  -  $260,000

book value = $50000

so here we can say that loss is

so loss = $50000  - $20,000

Hence loss  = $30000

answer; maintain a safe following distance;