Question
Disposal of Asset. During the year to 30 June 20X7, Hibiscus Ltd sold a non-current asset for $36,000. It was acquired three years ago at
Disposal of Asset.
During the year to 30 June 20X7, Hibiscus Ltd sold a non-current asset for $36,000. It was acquired three years ago at a cost of $180,000. At the date of disposal of the asset, the accumulated depreciation was $138,000.
What was the profit or loss on disposal, and what journal entries are needed to record the disposal?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
