Greg sold some equipment for $72,510 on june 13, 2019. greg had originally purchased the equipment for $86,750 on november 21, 2018. the equipment was subject to depreciation of $17,350. what gain or loss will greg recognize on the sale

capital gain = $3110

Explanation:

given data

sold equipment = $72,510

originally purchased equipment = $86,750

depreciation = $17,350

solution

first we get here Book value of Equipment that is express as

Book value of Equipment = original cost of equipment - depreciation 1

Book value of Equipment = $86750 - $17350

Book value of Equipment = $69400

so we get here gain that is express as

capital gain = sale of equipment - book value   2

capital gain = $72510 - $69400

capital gain = $3110