The loss from the disposal of the equipment is -$10,000
What is depreciation?
Depreciation is the portion of the asset value that is deemed to be consumed and shown as an expense in the year under review.
Under the straight-line depreciation method, depreciation per year, which is fixed, is the asset value minus the residual value divided by the useful life of the asset
depreciation=(asset value-residual value)/useful life
asset value=$78,000
residual value=$3000
useful life=5
depreciation=($78000-$3,000)/5
depreciation=$15,000
total depreciation for 4 years=$15,000*4
total depreciation for 4 years=$60,000
book value after 4 years=$78,000-$60,000
book value after 4 years=$18,000
profit/(loss)=proceeds from disposal-book value after 4 years
profit/(loss)=$8,000-$18,000
profit/(loss)=-$10,000
Option C is the most appropriate
Find out more about straight-line depreciation on:https://brainly.com/question/25806993
#SPJ1
