Asked by Madison Chrisman on Apr 28, 2024
Verified
A plant asset originally cost $64000 and was estimated to have a $4000 salvage value at the end of its 5-year useful life. If at the end of three years the asset was sold for $12000 and had accumulated depreciation recorded of $36000 the company should recognize a ______________ on disposal in the amount of $____________.
Gain On Disposal
The profit realized from the sale of assets other than inventory, exceeding the book value of the assets sold.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset since its purchase.
- Grasp the concept of book value and how it changes over the service life of an asset.
Verified Answer
AT
Learning Objectives
- Grasp the concept of book value and how it changes over the service life of an asset.