Xavier runs a florist shop. Her assistant goes out everyday in the van delivering flowers. The van accumulates high mileage quickly and Xavier usually replaces it after 3years. The van cost £10,100 on 1 June 2017 and Xavier has depreciated it on the reducing balance basis at 35% per year for 3 years. She sells it on I June 2021 for £3,000. Xavier year end is 31 May, depreciation is calculated annually at the year end. What is the profit or loss on the sale of the van?
Xavier runs a florist shop. Her assistant goes out everyday in the van delivering flowers. The van accumulates high mileage quickly and Xavier usually replaces it after 3years. The van cost £10,100 on 1 June 2017 and Xavier has depreciated it on the reducing balance basis at 35% per year for 3 years. She sells it on I June 2021 for £3,000. Xavier year end is 31 May, depreciation is calculated annually at the year end. What is the profit or loss on the sale of the van?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Xavier runs a florist shop. Her assistant goes out everyday in the van delivering flowers. The van accumulates high mileage quickly and Xavier usually replaces it after 3years. The van cost £10,100 on 1 June 2017 and Xavier has depreciated it on the reducing balance basis at 35% per year for 3 years. She sells it on I June 2021 for £3,000. Xavier year end is 31 May, depreciation is calculated annually at the year end.
What is the profit or loss on the sale of the van?
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