Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 23)
What is the impact on net profit if the sale price of an asset is more than its carrying amount?
Net profit will increase.
Net profit will decrease.
Net profit is not affected.
It depends on the depreciation method.
Explanation
A gain on disposal (selling price is greater than carrying amount) increases net profit.
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