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25 March, 06:54

On December 31, 2017, a company sells a plant asset that originally cost $375,000, receiving cash of $125,000. The accumulated depreciation account had a balance of $150,000 after the current year's depreciation of $37,500 had been recorded. The company should recognize a:

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  1. 25 March, 09:09
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    A loss of $100,000.00

    Explanation:

    Plants details:

    Original cost price: $375,000.00

    Depreciation to date : $ 150,000.00

    Selling price: $ 125,000.00

    Calculating the book value:

    =original price-depreciation

    =$375,000.00-$150,000.00

    =$225,000

    Calculating profit and loss

    = Selling price - book value

    =$125,000 - $ 225,000

    = ($100,000.00)

    A loss of $100,000.00
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