A piece of equipment purchased on January 1, 2011, for $16,000 was estimated to have a residual value of
$4,000 at the end of its three-year useful life. If the equipment was depreciated using the straight-line method and disposed of on December 31, 2012, for $5,000, what amount of gain or loss would be reported on the income statement?

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The Answer of A piece of equipment purchased on January 1, 2011, for $16,000 was estimated to have a residual value of
$4,000 at the end of its three-year useful life. If the equipment was depreciated using the straight-line method and disposed of on December 31, 2012, for $5,000, what amount of gain or loss would be reported on the income statement?

A Piece of Equipment Purchased on January 1, 2011, for $16,000