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
CIMA Forums
Chapter 6 Example 5 Disposal of Building
Got it, it's not asset carrying value, rather the original amount of asset.
6y ago#2Yes, the carrying value is the cost less accumulated depreciation. Glad you resolved it.
Thanks
Sign into reply to this topic.