A copy machine cost 42000 when new and has accumulated depre

A copy machine cost $42,000 when new and has accumulated depreciation of S40,000 Suppose Copies R Us sold the machine for $10,000 What is the result of this disposal transaction? O A. Gain of $10,000 O B. Loss of S8000 O C. Gain of $2,000 O D. Gain of $8,000

Solution

As per given data,

machine cost = $42000

accumulated depreciation = $40000

machine sold value = $10000

therefore net book value of machine is = $42000 - $40000 = $2000

machine sold value = $10000

GAIN = $10000 - $2000 = $8000