Answer:
Marquez will recognize a gain of $4714
Explanation:
The gain or loss on disposal of a fixed asset is calculated by deducting the carrying value of an asset from the sales proceeds. If the carrying value is higher than the cash received from the sale, there is a loss on disposal and vice versa.
The carrying value of an asset is,
Carrying value = Cost - Accumulated depreciation
The carrying value for Marquez's equipment is,
Carrying value = 58750 - 6964 = $51786
The gain/loss on sale is = 56500 - 51786 = $4714 Gain
Answer:
A gain of $4,714
Explanation:
When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.
The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.
Carrying amount
= $58,750 - $6,964
= $51,786
Gain/(loss) on disposal = $56,500 - $51,786
= $ 4,714
