DFS Company sold an asset for $8,500 in cash.The asset had an historical cost of $30,000 and accumulated depreciation of $20,000 on the day it was sold.How much is the gain or loss on the sale?

Question

Quizplus · Accepted Answer

The book value of the asset is $30,000 (historical cost) - $20,000 (accumulated depreciation) = $10,000. The asset was sold for $8,500, resulting in a loss of $10,000 - $8,500 = $1,500.

DFS Company Sold an Asset for $8,500 in Cash