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A machine that cost $86,400 and on which $63,600 of depreciation had been recorded was disposed of for $24,480. Indicate whether a gain or loss should be recorded, and for what amount.
Amount of Loss/Gain

Respuesta :

Answer:

the gain on disposal of machine is $1,680

Explanation:

The computation of the amount of loss or gain is as follows:

Cost of Assets is $86,400

Less: Accumulated Depreciation ($63,600)

Book Value of Assts $22,800

Now the sale value of the asset is $24,480

So there is a gain of

= $24,480  - $22,800

= $1,680

hence, the gain on disposal of machine is $1,680

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