Prinkle Corporation purchased equipment for $60,000 on January 1, 2016. On December 31, 2018, the equipment was sold for $28,000. Accumulated Depreciation as of December 31, 2018 was $31,000

Calculate gain or loss on the sale.

A) $1,000 gain
B) $1,000 loss
C) $31,000 loss
D) no gain no loss

B .Loss on disposal = Book value - Market value of assets received = (60,000 - 31,000 ) - $28,000 = $1,000

Business

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