2013 32

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accounting problem please help!!!!?

The records of Bartley company showed the following about a machine on January 1, 2013:

Purchased 1/1/2010 for $50,000
Accumulated depreciation at January 1, 2013, $32,600

On July 1, 2013, the machine was sold for $12,000. Depreciation for the first six months of 2013 was $2,400. The gain or loss on disposal would be

a) $3,000 gain
b) $5,400 gain
c) $3,000 loss
d) $5,400 loss
e) None of the above is correct

50,000 Original cost
- 32,600 Accumulate Depreciation through January 1, 2013
- 2,400 Six months of added depreciation
= 15,000 Book value of machine
Since the selling price is $3,000 less than the book value, there is a $3,000 loss.

c) $3,000 loss

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