Ask Question
26 August, 00:03

On December 31, 2017, a company sells a plant asset that originally cost $375,000, receiving cash of $125,000. The accumulated depreciation account had a balance of $150,000 after the current year's depreciation of $37,500 had been recorded. The company should recognize a:

+1
Answers (1)
  1. 26 August, 01:37
    0
    A loss of $100,000.00

    Explanation:

    Plants details:

    Original cost price: $375,000.00

    Depreciation to date : $ 150,000.00

    Selling price: $ 125,000.00

    Calculating the book value:

    =original price-depreciation

    =$375,000.00-$150,000.00

    =$225,000

    Calculating profit and loss

    = Selling price - book value

    =$125,000 - $ 225,000

    = ($100,000.00)

    A loss of $100,000.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On December 31, 2017, a company sells a plant asset that originally cost $375,000, receiving cash of $125,000. The accumulated depreciation ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers