Answer:
The profit or loss on selling a fixed asset will be
Explanation:
We know that,
Depreciation = Original value - Scrap value / Estimated life of an asset
-> 100,000 - 0/ 5
= Rs 20,000 for every year
for 3 years,
Depreciation= 3 * 20,000 = Rs 60,000
The value of the asset after 3 years of depreciation = 100,000- 60,000
=Rs 40,000 ---(1)
If it is sold for Rs 45,000 ---(2)
Profit = (2) - (1)
= 45,000-40000
= Rs 5,000