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A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?.

Sagot :

abiolataiwo2015

The amount of the gain or loss on disposal of the fixed asset is $2,000.

Gain or loss on disposal

First step

Book Value = Original Cost of Equipment - Accumulated Depreciation

Book Value = $30,000 -$28,500

Book value= $1,500

Second step

Gain=Sale Price -Book Value

Gain=$3,500-$1,500

Gain=$2,000

Inconclusion the amount of the gain or loss on disposal of the fixed asset is $2,000.

Learn more about gain or loss on disposal of asset here:https://brainly.com/question/14542603

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