An asset with a historical cost of $14,725 and accumulated depreciation of $10,000 was discarded, having no market value. how much will be recorded as a loss or gain on disposal?

Question

Hamza Barr

Business

6 July, 06:35

An asset with a historical cost of $14,725 and accumulated depreciation of $10,000 was discarded, having no market value. how much will be recorded as a loss or gain on disposal?

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Shania King · Answer 1

If the asset was recorded as having a historical cost of $14,725, then that amount is its initial book value, from which depreciation is subtracted. If the asset had accrued $10,000 in depreciation, then its book value at the time was $4,725. As such, if the asset was disposed with no market value, its disposal will be reflected as a book loss of $4,725.