A company has a property with a cost of $ 500,000 and accumulated depreciation of $ 200,000. If the company sells the property for $ 400,000, what ...

To calculate the gain or loss on the sale of the property, you need to subtract the accumulated depreciation from the cost of the property and then subtract the selling price from that result. Cost of the property: $500,000 Accumulated depreciation: $200,000 Selling price: $400,000 Gain or loss = (Cost of the property - Accumulated depreciation) - Selling price Gain or loss = ($500,000 - $200,000) - $400,000 Gain or loss = $300,000 - $400,000 Gain or loss = -$100,000 In this case, the company would have a loss of $100,000 on the sale of the property.