8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset? A. R20 000 loss B. R20 000 gain C. R80 000 gain D. R80 000 loss

8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset? A. R20 000 loss B. R20 000 gain C. R80 000 gain D. R80 000 loss

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14RE: (Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a...

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Question

8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset?

A. R20 000 loss
B. R20 000 gain
C. R80 000 gain
D. R80 000 loss

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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