Baltika plc purchased a van on 1 November 2020 for a total cost of £28,000 by paying £21,500 cash and trading in an old van. The old van had cost £25,000 and the related accumulated depreciation was £17,500. What is the profit/loss on disposal of the old van in Baltika plc's statement of profit or loss for the year ended 31 December 2020?

Baltika plc purchased a van on 1 November 2020 for a total cost of £28,000 by paying £21,500 cash and trading in an old van. The old van had cost £25,000 and the related accumulated depreciation was £17,500. What is the profit/loss on disposal of the old van in Baltika plc's statement of profit or loss for the year ended 31 December 2020?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 47P

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