Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later for $25,300. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $7,000 residual value.
Required:
1. What was the gain or loss on the sale?

Loss on sale of $900

Explanation:

Depreciation is the systematic allocation of estimated cost to an asset usually based on use. when an asset is sold at a price lower than its NBV, a loss is recognized on disposal, otherwise a gain is recognized.

Depreciation = ($39,000 - $7,000)/5 = $6,400

Accumulated depreciation after 2 years = $6,400 × 2 = $12,800

Net book value = $39,000 - $12,800

= $26,200

Gain/(loss) on disposal = $25,300 - $26,200 = ($900)

answer; communities of interest; i believe this is correct, plz check first good luck;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.