Wanda sold an asset for £10,000. The original cost was £23,000. The asset, which had an estimated residual value of £6,000, had a net book value at the time of sale of £9,000. What was the profit or loss on disposal

Wanda sold an asset for £10,000. The original cost was £23,000. The asset, which had an estimated residual value of £6,000, had a net book value at the time of sale of £9,000. What was the profit or loss on disposal

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

Wanda sold an asset for £10,000. The original cost was £23,000. The asset, which had an estimated residual value of £6,000, had a net book value at the time of sale of £9,000.

What was the profit or loss on disposal?

a) £1,000 loss
b) £4,000 profit
c) £1,000 profit
d) £4,000 loss

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