8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset? A. R20 000 loss B. R20 000 gain C. R80 000 gain D. R80 000 loss

8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset? A. R20 000 loss B. R20 000 gain C. R80 000 gain D. R80 000 loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset?

A. R20 000 loss
B. R20 000 gain
C. R80 000 gain
D. R80 000 loss

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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A9