On april 1, 2017, la presa company sells some equipment for $18,000. the original cost was $50,000, the estimated salvage value was $8,000, and the expected useful life was 6 years. on december 31, 2016, the accumulated depreciation account had a balance of $29,400. how much is the gain or loss on the sale?
a) $850 loss
b) $5400 loss
c) $2,600 loss

Option (a) is correct.

Explanation:

Depreciation in 2017:

      = $1,750

Accumulated Depreciation = $29,400 + Depreciation in 2017

                                             =  $29,400 +  $1,750

                                             =  $31,150

Book value on date of sale = Original cost - Accumulated Depreciation

                                             = 50,000 - 31,150  

                                              = 18,850

Loss on sale = Book value on date of sale - Sales price

                     = 18,850 - 18,000

                     = $850 (Loss)        

answer is a

explanation:

the correct answer is b.)