On 31 December 2012 an aeroplane with a cost of $200 000 has accumulated depreciation written off of $90 000.If it is sold for $130 000 on 1 January 2013 what will be the net effect of the sale on the income statement?

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Quizplus · Accepted Answer

The book value of the aeroplane is $110,000 ($200,000 cost - $90,000 accumulated depreciation). Selling it for $130,000 results in a $20,000 profit ($130,000 - $110,000).

On 31 December 2012 an Aeroplane with a Cost of $200