Answer:
The company should recognize a loss of $60,000
Explanation:
Data provided in the question:
Original cost = $564,000
Selling price = $222,000
Accumulated depreciation balance = $282,000
Current year's depreciation = $47000
Now,
The book value of the plant asset
= Original cost - Accumulated depreciation balance
= $564,000 - $282,000
= $282,000
therefore,
Gain = Selling price - Book value
= $222,000 - $282,000
= -$60,000
Here, the negative sign means loss
Therefore,
The company should recognize a loss of $60,000
