The sale of equipment costing Rs16,000 with accumulated depreciation of Rs13,400 and sale price of Rs4,000 would result in a:

Gain of Rs4,000

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Gain of Rs1,400

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Loss of Rs1,400

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Loss of Rs9,400

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Solution

The correct option is B
Gain of Rs1,400

Particulars Amount

Sale Value 4000

Book Value 2600 (16000-13400)

Profit 1400 (5000-3000)

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Similar questions

The balances in Equipment account and Accumulated depreciation account as on March 31, 2015 and 2016 are given below:
$\begin{matrix} Balance as at & March 31, 2015 & March 31, 2016 Equipment & 65, 00, 000 & 78, 70, 000 Accumulated depreciation & 10, 80, 000 & 16, 32, 000 \end{matrix}$
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Particulars	Amount
Sale Value	4000
Book Value	2600	(16000-13400)
Profit	1400	(5000-3000)

The sale of equipment costing Rs16,000 with accumulated depreciation of Rs13,400 and sale price of Rs4,000 would result in a:

The correct option is B Gain of Rs1,400 Particulars Amount Sale Value 4000 Book Value 2600 (16000-13400) Profit 1400 (5000-3000)

The correct option is B
Gain of Rs1,400

Particulars Amount

Sale Value 4000

Book Value 2600 (16000-13400)

Profit 1400 (5000-3000)