2 Task 2 You are required to calculate the profit and loss on disposal of a machine on the 30 June XX. The machine cost $275,000 and the machine was sold for $80,000. The accumulated depreciation for the asset was $150,000 at the time of disposal. Using the example provided you are required to calculate the profit and loss disposal of the asset. You are also required to produce a journal for the disposal of the asset. Example of profit and loss on asset disposal calculation: On the 30 June XX a machine that cost $200,000 was sold for $50,000. The accumulated depreciation was $55,000. The calculation for profit and loss on disposal will be consideration less net book value. The book value is the original cost of the asset less the accumulated depreciation. $50,000-($200,000-$55,000) = $95,000 loss on disposal. Example journal to record the asset disposal will be: Date Account name Description Debit Credit 30.6.XX Cash $50,000 30.6.XX Accumulated $55,000 depreciation 30.6.XX Machine $200,000 30.6.XX Loss on disposal $95,000 Total $200,000 $200,000