Answer: $36,000 loss
Explanation:
Purchase cost = $250,000
Freight charges = $3500
Installation charges = $2500
Maintenance cost = $5000
Depreciation = $25000
Offered price = $200,000
Total cost incurred = $(250,000 + 3500 + 2500 + 5000)
Total cost incurred = $261,000
Depreciation = $25,000
Book value of equipment = $261,000 - $25,000 = $236,000
Gain/loss = Book value - offered price
Gain/Los = $236,000 - $200,000
$36,000 loss