Tulip company purchased equipment for $58,000 on january 1, 2017. on december 31, 2019, the equipment was sold for $23,000. accumulated depreciation as of december 31, 2019 was $32,000. calculate gain or loss on the sale.

Net loss = $3,000

Explanation:

To calculate gain or loss on a fixed asset, lets first work out the net book value,

Net book value = Historic cost of asset - Accumulated Depreciation

NBV = 58,000 - 32,000 = $26,000

Net loss or gain = Selling price - Net book value

Net loss = 23,000 - 26,000 = $3,000

Hope that helps.

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