Anna Limited sells a piece of property, plant and equipment for £15,000. £22,500 accumulated depreciation had been charged on this asset by the date of disposal. The sale of this non-current asset resulted in a loss on disposal of £1,500. What was the original cost of the piece of property plant and equipment disposed of?

Question

Quizplus · Accepted Answer

The original cost is calculated as the sale price plus the accumulated depreciation minus the loss on disposal: £15,000 + £22,500 - £1,500 = £39,000.

Anna Limited Sells a Piece of Property, Plant and Equipment