Answer:
loss on sale: ($10,000)
Explanation:
some information is missing, so I looked it up:
the equipment was purchased at $140,000
estimated useful life: 5 years
residual value: $40,000
using straight line depreciation, the depreciation expense per year = ($140,000 - $40,000) / 5 years = $20,000
total depreciation expense between purchase and sale:
mid-month July 20x6 - mid-month July 20x7 = $20,000
mid-month July 20x7 - mid-month April 20x8 = $20,000 x 9/12 = $15,000
carrying value at the moment of sale = $140,000 - $35,000 = $105,000
loss on sale = $95,000 - $105,000 = ($10,000)
