Question

A company sells a plant asset that originally cost $450000 for $200000 on December 31, 2022. The accumulated depreciation account had a balance of $180000 after the current year's depreciation of $45000 had been recorded. The company should recognize a ________.

Answer 1

Answer:

$90,000 loss on disposal

Explanation:

If the current year's depreciation of $45,000 is recorded, the loss on disposal will be $45,000 multiplied by 2 which is $90,000