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7.3 An asset register showed a carrying amount of $67,460. A non-current asset costing $15,000 had been sold for $4,000, making a loss on disposal of $1,250. No entries had been made in the asset register for this disposal.
What is the correct balance on the asset register?
A $42,710
B $51,210
C $53,710
D $62,210
(2 marks)Please, in future, do not simply set test questions and expect an answer.
You must have an answer in the same book in which you found the question. You should say what it is in the answer that you are not clear about and then I will explain.If the asset was sold for 4,000 and made a loss of 1,250, then its carrying value must have been 5,250.
Therefore the correct carrying value in the asset register should be lower by the 5,250.
So 67460 – 5250 = 62,210.
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