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I had the following question:
An asset register showed a carrying value 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.
I am confusing between the carrying value and costing $15,000. Why the costing $15000 of non-current asset does not a beginning value of non-current asset? Why the author of this excercise have already given us the costing of non-current asset that is less than carrying amount?
I’am glad if you help me know$67,460 is the total carrying value of all of the non-current assets.
One of them (included in that total) has been sold, and so its carrying value needs removing from the total.
Since it was sold for 4,000 and made a loss of 1250, it means that the asset sold must have had a carrying value of 5,250.
Therefore 5,250 needs removing from the total.
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