ACCA FA2 LOSS ON DISPOSAL
Fred purchased a new van. The new van cost $60,000 and Fred paid a cheque of $24,000 to the dealer. In addition the dealer accepted an old van in part exchange. The old van had been bought three years ago for $100,000 and had been depreciated by $70,000.
What is the profit or loss on disposal of the old van?
Suggested solutions
| $ | |
| Cost of new van | 60,000 |
| cheque | 24,000 |
| Trade in value | 36,000 |
| Cost of old van | 100,000 |
| Accumulated depreciation | 70,000 |
| Carrying value of old van | 30,000 |
| Answer | 6,000 |
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