Sumner sold equipment that it uses in its business for $31,200. Sumner bought the equipment a few years ago for $79,400 and has claimed $39,700 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss

Respuesta :

Answer:

Particulars                                   Amount

Purchase price of equipment   $79,400

Less: Depreciation expenses   $39,700

Value of equipment                  $39,700

Particulars                                   Amount

Sales price of equipment          $31,200

Value of equipment                   $39,700

Section 1231 Ordinary loss     -$8,500