An asset was purchased for $ 26 comma 000 on January 1, 2019. The asset's estimated useful life was five years, and its resid

Question

3 years ago

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An asset was purchased for $ 26 comma 000 on January 1, 2019. The asset's estimated useful life was five years, and its resid

ual value was $ 4 comma 000. The straightminusline method of depreciation was used. Calculate the gain or loss if the asset is sold for $ 19 comma 000 on December 31, 2019, the last day of the accounting period.

Business

1 answer:

Zielflug [23.3K] · Answer 1 · 2021-11-19T03:54:26+03:00

Answer:

Loss on disposal $1,800

Explanation:

Cost of Asset 26,000

Useful life 5years

Sale proceeds 19,000

Depreciation for the year=$26,000/5=$5,200

Written Down value(WDV)=$26,000-$5,200=$20,800

Loss on Disposal= Sale proceeds- WDV=$19,000-$20,800=$1,800

It is assumed that depreciation is fully charged for the year on asset.

An asset was purchased for $ 26 comma 000 on January​ 1, 2019. The​ asset's estimated useful life was five​ years, and its resid

An asset was purchased for $ 26 comma 000 on January 1, 2019. The asset's estimated useful life was five years, and its resid