A company sold equipment that originally cost 100,000 for 60,000 cash.The accumulated depreciation on the equipment was 40,000 The company should recognize a: 20,000 loss 20,000 gain. 40,000 loss. 0 gain or loss. 60,000 gain.

To determine whether the company should recognize a gain or loss on the sale of the equipment, we need to calculate the book value of the equipment at the time of sale and compare it to the sale price.1. **Calculate the Book Value:** - Original cost of the equipment: - Book value = Original cost - Accumulated depreciation - Book value = 40,000 = \ - Book value: gain or loss.