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Chapter 6 Example 5 Disposal of Building

This topic has 2 replies, 2 voices, and was last updated 4 years ago by P2-D2.

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May 17, 2020 at 12:44 pm #571114
usk2307
Member
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Hi,
Plz help me with clarification. In the answer sheet and video of tutor, the base for calculating profit is Carrying Value however no accumulated depreciation is considered. Shouldn’t the profit on sale be like
Profit on sale = Accumulated Depn + Disposal amount – Carrying Value
If no, can you plz clarify. Thanks
May 17, 2020 at 12:51 pm #571115
usk2307
Member
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Got it, it’s not asset carrying value, rather the original amount of asset.
May 20, 2020 at 8:55 pm #571350
P2-D2
Keymaster
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Yes, the carrying value is the cost less accumulated depreciation. Glad you resolved it.
Thanks
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