Homework Answers
Dep. exp. per year = (32,000-2,000)/5 = 6,000
Accumulated depreciation at the end of Dec. 31, 2019 = 6,000 x 5 years = 30,000
Loss = Cost of equipment - Accumulated dep.
= $32,000 - 30,000
= $2,000
Answer: Option B) A $2,000 loss
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