A plant asset with a cost of $480,000 and accumulated depreciation of $456,000 is sold for $56,000. What is the amount of the gain or loss on disposal of the plant asset?
A) $56,000 loss.
B) $32,000 loss.
C) $32,000 gain.
D) $56,000 gain.

Question

Quizplus · Accepted Answer

The book value of the asset is $24,000 ($480,000 - $456,000). Selling it for $56,000 results in a gain of $32,000 ($56,000 - $24,000).

A Plant Asset with a Cost of $480,000 and Accumulated