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Fixed assets 500000 accumulated depreciation 120000 Sale Price of fixed assets 200000

The sale of price has resulted in A- gain of380000 B- loss of380000 C- gain of300000 D- loss of300000

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/29
IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

The answer is not given in the options. The correct answer is as given below :

 

5,00,000(-)1,20,000=3,80,000 which is the book value at the time of sale. The actual sale price is2,00,000. The difference between the book value and sale price is the profit and loss, which in this case is1,80,000 which is loss on the sale of the Asset.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Right answer is180000 loss

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