King Edward Company reported plant assets, net of accumulated depreciation, on January 1, 2011 at $437,500 and $589,300 on December 31, 2011. The income statement showed depreciation of $39,200. King Edward Company acquired $287,000 of plant assets during the year and reported proceeds from the sale of plant assets of $89,200 for the year. The gain or loss resulting from the sale of plant assets was a:
A)$5,050 gain.
B)$3,400 loss.
C)$6,800 loss.
D)$3,920 loss.

Question

Quizplus · Accepted Answer

The Answer of King Edward Company reported plant assets, net of accumulated depreciation, on January 1, 2011 at $437,500 and $589,300 on December 31, 2011. The income statement showed depreciation of $39,200. King Edward Company acquired $287,000 of plant assets during the year and reported proceeds from the sale of plant assets of $89,200 for the year. The gain or loss resulting from the sale of plant assets was a:
A)$5,050 gain.
B)$3,400 loss.
C)$6,800 loss.
D)$3,920 loss.

King Edward Company Reported Plant Assets, Net of Accumulated Depreciation