- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
- Posts
The carrying value of a company’s non-current assets was $ 200,000 at 1 August 20X0. During the year ended 31 July 20X1, the company sold non-current assets for $ 25,000 on which it made a loss of $5,000. The depreciation charge for the year was $ 20,000. What was the carrying value of non-current assets at 31 July 20X1?
This is almost the same as the previous question you asked. Surely the book where you found this question also has an answer in it. This forum is for you to ask when you have problems – not just for you to set me questions for me to answer!
Have you watched the free lecture on depreciation?
The assets sold must have had a carrying value of 30,000 (since they were sold for 25,000 which made a loss of 5,000).
So the carrying value brought forward is reduced by the carrying value of the asset sold, and by the depreciation charge for the year.
- You must be logged in to reply to this topic.