Respuesta :
The sale of an equipment is referred to as disposal of an asset. The required answers are:
1. Gain on disposal = $2000
2. Journal entry for the disposal of the equipment.
Dr Cr
$ $
Cash acct. 10000
Asset 8000
P or L 2000
Disposal of an asset implies the sale of a plant, property, or equipment. This would ensure the recovery of the carrying amount of the item during sale.
1. The gain or loss on sale of the equipment can be determined by deducting its carrying amount from its recoverable amount.
Thus, to determine the gain or loss on disposal;
