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Depreciation

Mmish10y ago
Hi sir, plz help. Question: 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/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. Calculate the gain/loss on disposal. Gain/Loss on disposal= Proceeds- CV Proceeds=15,000 CV= Original amount- accum depreciation =60,000- ???? my issue is the accumulated depreciation...there is not straight line % or any information on depreciation charge for plant and equipment , apart from the comment on annual depreciation charge of $230,000 for plant and equipment.. what am I missing?? plz help! Thanks
Mmish10y ago#1
sorry I am being so silly!! I should really read the question again and again! I think I am due a coffee break!! Accumulated depreciation = (60,000-0)/6 years =10,000 *5=50,000 because plant was bought 5 years ago. therefore CV=Proceeds-cv =60,000-50,000 =10,000 gain on dispoal!!
MikeLittleMikeLittleTutor10y ago#2
Hmmm! No further comment is really necessary!
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