Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 29)
Consider the scenario where an asset with a cost of $10,000, accumulated depreciation of $6,000, and a salvage value of $1,000 is sold for $3,000. What is the amount of the loss or gain on disposal?
Loss of $1,000
Gain of $1,000
Loss of $2,000
Gain of $2,000
Explanation
Net Book Value = Cost - Accumulated Depreciation = $10,000 - $6,000 = $4,000. Selling price = $3,000. Loss = $4,000 - $3,000 = $1,000
Comments (0)
