Answer:
There was a loss on the asset of $3,618.45.
Explanation:
Given that an asset was sold during the year, and the cost of the asset was $ 64,500, after which the asset was depreciated for four years, using the straight-line method at 10% per annum, and finally the proceeds from the sale of this asset was $ 38,700, to determine what was the gain or loss on the asset, if any, the following calculation must be performed:
64,500 x 0.9 ^ 4 = X
42,318.45 = X
42,318.45 - 38,700 = X
3,618.45 = X
Thus, there was a loss on the asset of $ 3,618.45.
Answer:The company made no gain or loss on this sale
Explanation:
