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Question
On December 31, Strike Company sold one of its batting cages for $55,000. The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?
a. loss of $55,000
b. loss of $5,000
c. gain of $5,000
d. gain of $55,000
Answer
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