Question

Christopher Inc. sold a fixed asset for $37,000 and experienced a $6,000 loss on the disposal. What is the book value of the asset?

a) $43,000
b) $31,000
c) $37,000

Answer 1

The book value of the asset sold by Christopher Inc. is calculated by adding the loss on disposal to the selling price, which results in a book value of $43,000.

Step-by-step explanation:

The question is asking to calculate the book value of an asset that Christopher Inc. sold. The asset was sold for $37,000 and resulted in a $6,000 loss. To find the book value, we need to add the loss experienced on the disposal back to the selling price. Thus the book value is the selling price plus the loss on disposal.

The calculation is as follows: Selling Price ($37,000) + Loss on Disposal ($6,000) = Book Value ($43,000). Therefore, the book value of the asset is $43,000