On July 1, 2022, Blossom Company sells equipment for $119000. The equipment originally cost $330000, had an estimated 5-year life and an expected salvage value of $50000. The Accumulated Depreciation account had a balance of $196000 on January 1, 2022, using the straight-line method. The gain or loss on disposal is

Gain= $13,000

Explanation:

Giving the following information:

Selling price= $119,000.

The equipment originally cost $330000, had an estimated 5-year life, and an expected salvage value of $50000.

The Accumulated Depreciation account had a balance of $196000.

First, we need to calculate the accumulated depreciation on July 1, 2022.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (330,000 - 50,000)/5= $56,000

Depreciation for 2022= (56,000/12)*6= 28,000

Accumulated depreciation= 196,000 + 28,000= $224,000

The gain or loss is determined using the book value:

Book value= 330,000 - 224,000= 106,000

Gain/loss= selling price - book value

Gain/loss= 119,000 - 106,000

Gain= $13,000

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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answer; the cpi;