On 31 May 2018 a photocopying machine with a cost of $12 000 has accumulated depreciation written off of $10 000. If the machine is sold for $1 500 on 1 June 2018 what will be the net effect of the sale on the income statement?

Question

Quizplus · Accepted Answer

The net book value of the photocopying machine on 31 May 2018 is $2,000 ($12,000 cost - $10,000 accumulated depreciation). Selling it for $1,500 results in a $500 loss ($2,000 - $1,500).

On 31 May 2018 a Photocopying Machine with a Cost