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Homework answers / question archive / A company sells a plant asset which originally cost $356000 for $119000 on December 31, 2018
A company sells a plant asset which originally cost $356000 for $119000 on December 31, 2018. The Accumulated Depreciation account had a balance of $145000 after the current year's depreciation of $30000 had been recorded. The company should recognize a O $62000 loss on disposal. O $92000 loss on disposal. O $92000 gain on disposal. O $237000 loss on disposal.
Answer : Option with $92,000 loss on disposal is the correct Option.
Working:
Gain/loss on disposal = Assets sale value - (Asset Cost - Accumulated depreciation till date)
= $119,000 - ($356,000 - $145,000)
=$119,000 - $211,000
= - $92,000
Therefore it is
$92,000 loss on disposal Is correct Option.
Answer : Option with $92,000 loss on disposal is the correct Option.
Working:
Gain/loss on disposal = Assets sale value - (Asset Cost - Accumulated depreciation till date)
= $119,000 - ($356,000 - $145,000)
=$119,000 - $211,000
= - $92,000
Therefore it is
$92,000 loss on disposal Is correct Option.
