On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $257,966.00 with an accumulated depreciation of $232,169.40. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $23,216.94.
Required:
Question: What is the amount of the gain or loss on this transaction?
Select the correct answer.
- Loss of $25,796.60
- Loss of $2,579.66
- Gain of $2,579.66
- Gain of $25,796.60
Note: Please provide reasons to support your answer.