Tulip Company purchased equipment for $58,000 on January 1, 2017. On December 31, 2019, the equipment was sold for $23,000. Accumulated Depreciation as of December 31, 2019 was $32,000. Calculate gain or loss on the sale.
A) $3000 gain
B) $3000 loss
C) $32,000 loss
D) no gain no loss
B) $3000 loss
Explanation: Loss on disposal = Book value - Market value of assets received = (58,000 - 32,000) - $23,000 = $3000
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