Ngu owns equipment that cost $100,700 with accumulated depreciation of $68,800. Ngu asks $36,800 for the equipment but sells the equipment for $34,200. Compute the amount of gain or loss on the sale.a. $2,600 gain.b. $2,300 gain.c. $2,300 loss.d. $4,900 loss.e. $4,900 gain.

b. $2,300 gain

Explanation:

The computation of the amount of gain or loss on the sale is shown below:

But before that the net book value is

Net book value of the equipment is

= Cost of an equipment - accumulated depreciation

= $100,700 - $68,800

= $31,900

Now

Gain (Loss) on the sale is

= Sale amount -  Net book value of the equipment

= $34,200 - $31,900

= $2,300 gain

Hence, the correct option is b.

Sure, why not :)

Explanation: