Acompany sold equipment that originally cost $250,000 for $50,000 cash. the accumulated depreciation on the equipment was $200,000. the company should recognize a:

There is no gain/loss on disposal hence the company would only de-recognize the asset from the books and recognize the cash received cash received from the disposal.

Explanation:

Cost of asset = $250,000

Accumulated depreciation = $200,000

Net book value of asset = Cost of asset - Accumulated depreciation

                                        = $250,000 - $200,000

                                        = $50,000

Sales on disposal = $50,000

Gain/(loss) on disposal = sales - net book value

= $50,000 - $50,000

= 0

There is no gain/loss on disposal hence the company would only de-recognize the asset from the books and recognize the cash received cash received from the disposal.

answer; balance sheets;