A plant asset with a cost of $600,000 and accumulated depreciation of $570,000 is sold for $70,000.What is the amount of the gain or loss on disposal of the plant asset?
A)$70,000 loss
B)$40,000 loss
C)$40,000 gain
D)$70,000 gain

Question

Quizplus · Accepted Answer

The book value of the asset is $600,000 - $570,000 = $30,000. The asset is sold for $70,000, resulting in a gain of $70,000 - $30,000 = $40,000.

A Plant Asset with a Cost of $600,000 and Accumulated