Keanu disposed of a motor vehicle on 31 December 20X7 for £7700.He bought the vehicle on 1 January 20X6 for £12 580 and depreciated it on the reducing balance basis at 20% each year.His year end is 31 October. What was the profit or loss on the sale of this asset (to the nearest £)?

Question

Quizplus · Accepted Answer

The vehicle's book value at the time of sale was £8,051. The sale price was £7,700, resulting in a loss of £351.

Keanu Disposed of a Motor Vehicle on 31 December 20X7