Profit or Loss Calculation

FA – May 2018 – L1 – SA – Q19 – Accounting for Property, Plant, and Equipment (IAS 16)

Determines the profit or loss on the disposal of a vehicle after depreciation.

Question

A vehicle was purchased on January 1, 2011, at a cost of N2,000,000 and was depreciated at 25% on cost. It was sold on December 31, 2013, for N1,400,000. Full-year depreciation was charged in the years of purchase and disposal. Determine the profit or loss on the disposal:
A. N900,000 loss
B. N500,000 loss
C. N500,000 profit
D. N900,000 profit
E. N1,150,000 profit

Answer

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Tags: Asset Disposal, Depreciation, Profit or Loss Calculation
Level: Level 1

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

Question Tag: Profit or Loss Calculation

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FA – May 2018 – L1 – SA – Q19 – Accounting for Property, Plant, and Equipment (IAS 16)

Determines the profit or loss on the disposal of a vehicle after depreciation.

FA – May 2018 – L1 – SA – Q19 – Accounting for Property, Plant, and Equipment (IAS 16)

Determines the profit or loss on the disposal of a vehicle after depreciation.

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Question Tag: Profit or Loss Calculation

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FA – May 2018 – L1 – SA – Q19 – Accounting for Property, Plant, and Equipment (IAS 16)

Determines the profit or loss on the disposal of a vehicle after depreciation.

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FA – May 2018 – L1 – SA – Q19 – Accounting for Property, Plant, and Equipment (IAS 16)

Determines the profit or loss on the disposal of a vehicle after depreciation.

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