Question

A plant asset with a cost of $360,000 and accumulated depreciation of $342,000 is sold for $42,000. what is the amount of the gain or loss on disposal of the plant asset?

Answer 1

A cost of a plant asset = $360,000
Accumulated depreciation = $342,000
$360,000 - $342,000 = $18,000
The new asset`s book value is $18,000. It is sold for $42,000.
$42,000 - $18,000 = $24,000
Answer: The amount of the gain is $24,000.