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A car was purchased by T for $12,000 on 1 April 20X1 and has been depreciated at 20% each year straight line, assuming no residual value.
The accounting policy is to charge a full year’s depreciation in the year of purchase and no depreciation in the year of sale. The car was traded in for a replacement vehicle on 1 August 20X4 for an agreed trade-in value of $5,000.
What was the profit or loss on the disposal of the vehicle for the year ended 31 December 20X4?Please do not type out full questions and expect to be provided with a full answer. You must have an answer in the same book in which you found the question so ask about whatever it is in the answer that you are not clear about and then I will explain.
Have you watched my free lectures on tangible non-current assets?
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