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Profit or loss on disposal

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Ken Garrett.

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May 9, 2021 at 2:17 pm #620145
khulan2002
Member
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Jack’s year ended is 31 March. He depreciates an office desk at 25% per annum on the straight line basis. A full year’s depreciation is charged in the year an asset is purchased, and no depreciation is charged in the year it is sold. In September 2016, Jack bought an office desk for $90,000.
If he sells the desk for $50,000 in August 2018, what will be Jack’s profit or loss on disposal?
Answer: ????
May 9, 2021 at 5:34 pm #620162
Ken Garrett
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So, there will be depreciation of 25% x 90,000 for y/e 31/3/2017, 31/3/2018 None in year end 31/3/2019 because disposed off during that year.
When sold it was half depreciated so NBV = 45,000
If sold for 50,000, profit = 5000
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