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A photocopier cost $ 102 comma 000 when new and has accumulated depreciation of $ 93 comma 000. If the business discards this plant​ asset, the result is​ ________.

User KyleMit
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Answer:

$9,000

Step-by-step explanation:

The result is the Net Book Value (NBV) as the time when the photocopier is discarded. The formula for calculating the NBV is given as follows:

NBV = Cost of equipment - Accumulated depreciation

Since;

Photocopier cost = $102 comma 000 = $102,000

Accumulated depreciation = $ 93 comma 000 = $93,000

Therefore, the NBV for the photocopier can be obtained as using the NBV formula above as follows:

NBV = $102,000 - $93,000

= $9,000

If the business just discard the photocopier without selling at a price as at the time of discard, the business has lost a total of $9,000 which is the NBV of the photocopier.

User Sam Kingston
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