The market shares of the top five firms in the dishware industry are 18%, 32%, 11%, 14%, and 8%. What is the four-firm concentra
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Answer:
Loss on sale of machinery = $8,000
Explanation:
Under Straight line depreciation method, depreciation is calculated as follows:
Depreciation to be charged per annum over the life of asset is given by the formula: =
Depreciation = ($70,000 - $ 6,000) ÷ 8 years
Depreciation to be charged every year = $8,000
Now, total depreciation charged till the end of 6 years = 6 × $8,000 = $48,000
Book Value at the end of year 6 = $70,000 - $48,000= $22,000
Sale Value of the asset = $ 14,000
Loss on sale = $22,000 - $14,000 = $8,000