On December 31, 2018, Franz Company Sold a Piece of Machinery

Essay

On December 31, 2018, Franz Company sold a piece of machinery it purchased on January 1, 2011, with an original cost of $450,000. The asset had a useful life of 15 years and a scrap value of $50,000. It sold the asset for $200,000 in cash. Franz recorded depreciation through December 31, 2017, using the straight-line method. What was the carrying value of the asset on the date of sale? What is the gain or loss on disposal?