Q1

Assume that a machine with a cost of $90 000 has accumulated depreciation of $48 000 on the date of its disposal. What is the profit or loss on disposal of the old machine if it was traded-in for $40 000 on a new machine? Group of answer choices

$8 000 gain

$42 000 loss

$2 000 loss

$40 000 loss

Q2,

On 31 May2022 a photocopying machine with a cost of $12 000 has accumulated depreciation written off of $10 000. If the machine is sold for $1 500 on 1 June 2022 what will be the net effect of the sale on the statement of financial performance? Group of answer choices

$500 loss

$1 500 loss

$500 profit

$1 500 profit