A non-current asset (cost $50,000, acc depreciation $25,000 ) is given in part exchange for a new asset costing $90,000. The agreed trade-in value was $40,000.
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 | 50,000 |
| LESS ACCUMULATED DEPRECIATION | (25,000) |
| CARRYING VALUE OF NON-CURRENT ASSET | 25,000 |
| TRADE IN PRICE OF THE ASSET | 40,000 |
| PROFIT/(LOSS) $ | 15,000 |
To0. do the same topic again in ACCA F3 Non current Assets 08