A machine was bought on 3rd October 2015 for $20,000. It was sold for cash for $10,000 on 2nd January 2019. The machine had been depreciated at 12% on cost. Depreciation is charged proportionately for the period the asset is used during the year of purchase with no depreciation charged during the year of disposal. Required: Determine how much the loss or gain on disposal of the machine was.

A machine was bought on 3rd October 2015 for $20,000. It was sold for cash for $10,000 on 2nd January 2019. The machine had been depreciated at 12% on cost. Depreciation is charged proportionately for the period the asset is used during the year of purchase with no depreciation charged during the year of disposal. Required: Determine how much the loss or gain on disposal of the machine was.

Name: A machine was bought on 3rd October 2015 for $20,000. It was sold for
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Description: A machine was bought on 3rd October 2015 for $20,000. It was sold for cash for $10,000 on 2ndJanuary 2019. The machine had been depreciated at 12% on cost. Depreciation is chargedproportionately for the period the asset is used during the year of pu

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 33CE

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