Accounting for IGCSE & O level - Accounting Procedures (Section 9 - No. 14)
If an asset's cost is $10,000, accumulated depreciation is $6,000, and it is sold for $5,000, what is the gain or loss?
Gain of $1,000
Loss of $1,000
Gain of $6,000
Loss of $6,000
Explanation
NBV = $10,000 - $6,000 = $4,000; Proceeds ($5,000) - NBV ($4,000) = Gain of $1,000.
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