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sir if it says that the assets with a carrying value of $2,000,000 were disposed of for sales proceeds of $1,500,000.. in the statement of cashflow, under the investing activities, the proceeds from sale of non-current assets should be, $1,500,000 or $500,000? I’m really confused with this.
& as well as on how to get the (profit)/loss of non current assets under the operating activities
Since the question says that the proceeds are $1,500,000 then this is the cash received and this is what the proceeds are in the Statement of cash flows, under investing activities.
The profit or loss on sale is the difference between the sale proceeds and the carrying value (net book value).
Have you watched the free lectures on non-current assets and depreciation?
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