Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 23)
If an asset has a cost of $20,000, accumulated depreciation of $15,000, and is sold for $6,000, what is the gain or loss on the sale?
$1,000 gain
$1,000 loss
$5,000 gain
$5,000 loss
Explanation
Book Value = 20,000-15,000 = $5,000. The sale is $6,000, therefore a gain of $1,000.
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