contestada

An asset was purchased for $36,000 on January 1, 2016. The asset's estimated useful life was five years, and its residual value was $4,000. The straight-line method of depreciation was used. Calculate the gain or loss if the asset is sold for $18,000 on December 31, 2016, the last day of the accounting period.

Respuesta :

brontealfred

Answer:

A loss of $11600

Explanation:

The cost of the item is $36000. to calculate depreciation per year we first minus residual value and then divide it by the number of useful years as so:

$36000 - $4000 = $32000

$32000 ÷ $5 = 6400

This means on 31 December 2016 the Carrying amount would be :

$36000 - $6400 = 29600

if it was sold on this day that means that it would have been sold at a loss as the carrying amount exceeds the amount of money it was sold for

$18000 - $29600 = -$11600

Otras preguntas