Chapter 8

If Linas had NOT sold the ppe to Asta, Linas would have charged one more year's worth of depreciation on the item of plant that had cost $200,000 and was being depreciated over its useful life of 5 years. At the time of sale to Asta, there were 2 remaining years of estimated useful life, so Linas would have charged $40,000 As it was, Linas DID sell the plant to Asta for $90,000 and Asta will have charged depreciation for 1 year on the plant over its estimated remaining useful life of 2 years so will have charged $45,000 OK?

Ok, thanks

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