Gain or Loss on Disposal – NBC Institute

FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)

Calculate the gain or loss on the disposal of an old equipment traded in for a new one, in accordance with IAS 16.

Question

Odeda Limited operates its business with plant and equipment that qualified under IAS 16 as property, plant, and equipment. On January 1, 2016, the cost of the company’s plant was N4,000,000, and the accumulated depreciation was N1,600,000. On January 2, 2016, the company bought a new equipment at the cost of N1,000,000, and the equipment supplier accepted an old equipment owned by Odeda Limited in part exchange for a value of N80,000. The equipment originally cost N600,000, and its accumulated depreciation is N500,000.

You are required to calculate the gain or loss on the disposal of the old equipment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: and Equipment, Depreciation, Gain or Loss on Disposal, IAS 16, Plant, Property, Question Tags: Disposal of Assets
Level: Level 2

Topic: Property, Plant, and Equipment (IAS 16)
Series: MAY 2018

FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals

Calculating profit or loss on the disposal of equipment after accounting for depreciation.

Question

Shark and Co. purchased a piece of equipment for N960,000 on September 1, 2016. Depreciation was charged at 12.5% per annum on a straight-line with zero residual value. Depreciation is charged from acquisition date to disposal date. The equipment was sold for N315,000 on June 30, 2022. Calculate the profit or loss on disposal.

A. N45,000 Gain

B. N45,000 Loss

C. N50,000 Gain

D. N55,000 Gain

E. N55,000 Loss

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Disposal of assets, Gain or Loss on Disposal
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2023

FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)

Calculate the gain or loss on the disposal of an old equipment traded in for a new one, in accordance with IAS 16.

Question

You are required to calculate the gain or loss on the disposal of the old equipment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: and Equipment, Depreciation, Gain or Loss on Disposal, IAS 16, Plant, Property, Question Tags: Disposal of Assets
Level: Level 2

Topic: Property, Plant, and Equipment (IAS 16)
Series: MAY 2018

FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals

Calculating profit or loss on the disposal of equipment after accounting for depreciation.

Question

A. N45,000 Gain

B. N45,000 Loss

C. N50,000 Gain

D. N55,000 Gain

E. N55,000 Loss

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Disposal of assets, Gain or Loss on Disposal
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2023

Question Tag: Gain or Loss on Disposal

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FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)

Calculate the gain or loss on the disposal of an old equipment traded in for a new one, in accordance with IAS 16.

FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals

Calculating profit or loss on the disposal of equipment after accounting for depreciation.

FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)

Calculate the gain or loss on the disposal of an old equipment traded in for a new one, in accordance with IAS 16.

FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals

Calculating profit or loss on the disposal of equipment after accounting for depreciation.

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FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)

Calculate the gain or loss on the disposal of an old equipment traded in for a new one, in accordance with IAS 16.

You're reporting an error for "FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)"

FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals

Calculating profit or loss on the disposal of equipment after accounting for depreciation.

You're reporting an error for "FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals"

FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)

Calculate the gain or loss on the disposal of an old equipment traded in for a new one, in accordance with IAS 16.

You're reporting an error for "FR – May 2018 – L2 – Q7c – Property, Plant, and Equipment (IAS 16)"

FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals

Calculating profit or loss on the disposal of equipment after accounting for depreciation.

You're reporting an error for "FA – May 2023 – L1 – SA – Q10 – Depreciation Methods and Accounting for Disposals"

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