Cash Flows

DN’s extracts of financial statements for the year ended 31 October 20X6 are as follows:

DN Statement of profit or loss and other comprehensive income for the year to 31 October 20X6:

$000 $000
Profit for the period 650
Comprehensive income:
Revaluation gain 400
____
Total comprehensive income 1,050

DN Statement of financial position at:

31 October 20X6 31 October 20X5
$000 $000 $000 $000
Property, plant and equipment 4,942 4,205

Additional information:

Plant and equipment sold during the year for $15,000 had originally cost $60,000 five years ago. The plant and equipment were depreciated on the straight line basis over six years. Any gain or loss on disposal has been included in overheads.

Overheads include the annual depreciation charge of $100,000 for property and $230,000 for plant and equipment.

Which TWO of the following amounts would appear in the investing activities section of the Statement of Cash Flows according to IAS 7?

PPE (carrying amount)
B/f 4,205 Depreciation (100 + 230) 330
Additions (balance) 677 Disposal (60 x 1/6) 10
Revaluation gain 400 c/f 4,942
_____ ______
5,282 5,282
_____ ______

Can you please explain why disposal is 10

Shouldn’t it be 60,000/6 = 10,000
60 000 – (10,000*5) = 10,000

However it was sold for 15,000- 10000= isn’t disposal gain 5000

shouldn’t this value be included in the T account ?