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A company purchased an asset on 1 January 20X3 at a cost of $1,000,000. It is depreciated over 50 years by the straight line method (nil residual value), with a proportionate charge for depreciation in the year of acquisition and the year of disposal. At 31 December 20X4 the asset was re-valued to $1,200,000. There was no change in the expected useful life of the asset. The asset was sold on 30 June 20X5 for $1,195,000. What profit or loss on disposal of the asset will be reported in the income statement of the company for the year ended 31 December 20X5? A. Loss of $5,000 B. Profit of $235,000 C. Profit of $247,500 D. Profit of $7,500 |