depreciation

Hi John

I am stuck at this question

How will we calculate the gain/loss on scrapping

Outflow scrapped numerous items of plant and equipment during the year. The items scrapped were originally purchased for $7000,000 and they had a carrying amount of $1000,000 at the date of siposal. The gain or loss is included in the cost of sales.

THey havent given the proceeds, THey have only given-

Cost of sales- 33560

Plant and equipment 2001- 245000 , Acc dep 145,000
Plant and equipment 2002 – 260,000 , Acc dep 150,000