A non-current asset (cost $112,500, acc depreciation $56,250 ) is given in part exchange for a new asset costing $202,500. The agreed trade-in value was $90,000.
What profit or loss on disposal of the asset will be reported in the statement of profit or loss of the company for the year ended?
SUGGESTED SOLUTIONS
| $ | |
| COST OF NON-CURRENT ASSET | 112,500 |
| LESS ACCUMULATED DEPRECIATION | (56,250) |
| CARRYING VALUE OF NON-CURRENT ASSET | 56,250 |
| TRADE IN PRICE OF THE ASSET | 90,000 |
| PROFIT/(LOSS) $ | 33,750 |
To0. do the same topic again in ACCA F3 Non current Assets 08