Answered: A fixed asset with a cost of $50,000…

A fixed asset with a cost of $50,000 and accumulated depreciation of $45,000 is sold for $6,000. What is the amount of the gain or loss on disposal of the fixed asset?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 6MC: At the end of the expected useful life of a depreciable asset with an estimated 15% residual value,...

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Question

Please explain the solution to this general accounting problem with accurate principles.

A fixed asset with a cost of $50,000 and
accumulated depreciation of $45,000 is sold for
$6,000. What is the amount of the gain or loss
on disposal of the fixed asset?

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