A photocopier cost $105,000 when new and has accumulated depreciation of $96,000. If the business discards this plant asset, the result is ________.

Question

Quizplus · Accepted Answer

The cost of the photocopier is $105,000 and its accumulated depreciation is $96,000, leaving a book value of $9,000 ($105,000 - $96,000). Discarding it results in a loss of $9,000, as the asset's remaining value is completely written off.

A Photocopier Cost $105,000 When New and Has Accumulated Depreciation