Accumlated Depreciation?

Question

The original cost of the equipment was 120,000 and it was sold for 80,000. And had an accumlated depreciation of 40,000. What was the loss or gain on the sale ?

Answer 1

Original cost $120,000
Accd. depn. $40,000
Net book value = $80,000
Sales proceeds = $80,000
Gain/(loss) = 0
No gain, no loss.

Answer 2

$0

Answer 3

accumulated depreciation is a temporary account, its not a real figure, its just an estimate so neither. It only matters when you go to sell it, that is when you record it as a loss or gain