A plant asset with a cost of $300,000 and accumulated depreciation of $285,000 is sold for $35,000.What is the amount of the gain or loss on disposal of the plant asset?
A)$35,000 loss
B)$20,000 loss
C)$20,000 gain
D)$35,000 gain

Question

Quizplus · Accepted Answer

The book value of the asset is $15,000 ($300,000 cost - $285,000 accumulated depreciation). Selling it for $35,000 results in a $20,000 gain ($35,000 - $15,000).

A Plant Asset with a Cost of $300,000 and Accumulated