Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 42)
If an asset is sold for $15,000 and its net book value is $12,000, what is the impact on the profit for that accounting period?
Profit will increase by $3,000.
Profit will decrease by $3,000.
Profit will increase by $27,000.
Profit will decrease by $27,000.
Explanation
The selling price is greater than the book value. This will create a gain of $3,000 and increase profits.
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