A plant asset with a cost of $240,000 and accumulated depreciation of $228,000 is sold for $28,000. What is the amount of the gain or loss on disposal of the plant asset?
A) $28,000 loss.
B) $16,000 loss.
C) $16,000 gain.
D) $28,000 gain.

Question

Quizplus · Accepted Answer

The book value of the asset is $12,000 ($240,000 cost - $228,000 accumulated depreciation). Selling it for $28,000 results in a gain of $16,000 ($28,000 - $12,000).

A Plant Asset with a Cost of $240,000 and Accumulated