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23 December, 12:43

A plant asset with a cost of $360,000 and accumulated depreciation of $342,000 is sold for $42,000. what is the amount of the gain or loss on disposal of the plant asset?

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  1. 23 December, 15:15
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    A cost of a plant asset = $360,000

    Accumulated depreciation = $342,000

    $360,000 - $342,000 = $18,000

    The new asset's book value is $18,000. It is sold for $42,000.

    $42,000 - $18,000 = $24,000

    Answer: The amount of the gain is $24,000.
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