During 2012, noller co. sold equipment that had cost $299,633 for $175,913. this resulted in a gain of $12,900. the balance in accumulated depreciation—equipment was $975,000 on january 1, 2012, and $930,000 on december 31. no other equipment was disposed of during 2012. depreciation expense for 2012 was

$91,620

Explanation:

Given:

Selling price of equipment = $175,913

Gain on sale = $12,900

Book value of equipment = Selling price - gain

                                          = 175,913 - 12,900

                                          = $163,013

Cost of equipment = $299,633

Book value = $163,013

Accumulated depreciation on sold equipment = Cost - book value

                                                                             = 299,633 - 163,013

                                                                             = $136,620

Calculation of depreciation expense in 2012:

Accumulated depreciation as on 31 December 2012 = $930,000

Accumulated depreciation as on 1 January 2012 = $975,000

Depreciation expense during the year = Closing accumulated depreciation + accumulated depreciation on sold equipment - Beginning accumulated depreciation

= 930,000 + 136,620 - 975,000

= $91,620

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