In: Accounting
Seaside Inc. recorded the following transactions over the life of a piece of equipment purchased in 2014: |
Jan. 1, | 2014 |
Purchased the equipment for $37,870 cash. The equipment is estimated to have a five-year life and $5,560 salvage value and was to be depreciated using the straight-line method. |
Dec. 31, | 2014 | Recorded depreciation expense for 2014. |
May 5, | 2015 | Undertook routine repairs costing $702. |
Dec. 31, | 2015 | Recorded depreciation expense for 2015. |
Jan. 1, | 2016 |
Made an adjustment costing $3,010 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates. |
Dec. 31, | 2016 | Recorded depreciation expense for 2016. |
Mar. 1, | 2017 | Incurred $324 cost to oil and clean the equipment. |
Dec. 31, | 2017 | Recorded depreciation expense for 2017. |
Jan. 1, | 2018 |
Had the equipment completely overhauled at a cost of $7,310. The overhaul was estimated to extend the total life to seven years and revised the salvage value to $4,170. |
Dec. 31, | 2018 | Recorded depreciation expense for 2018. |
July 1, | 2019 | Sold the equipment for $9,390 cash. |
Determine the amount of the gain or loss Seaside will report on the disposal of the equipment on July 1, 2019. (Round intermediate calculations and final answer to nearest dollar amount. Loss amounts should be indicated with a minus sign.)