Question

Heel System Announcements GALERATOR PRINTER VERSION BACK NET Question 10 A plant asset cost $110700 when it was purchased on January 1, 2011. It was depreciated by the straight-ne method based on a discarded with no cash proceeds what gain or loss should be recognized on the retirement? year life with no savage value. On June 30, 2015, the asset was $24600 loss $18450 loss $12300 gain No gain or loss Click If you would like to show Work for this questioni Open Show Work By accessing this question Assistance, you will learn while you can points based on the point Potential Policy set by your instructor Question Attempts of used SAVE FOR LATER SUBMIT ANG

Answer 1

Depreciation expense = (Cost - Salvage value) /Useful life

= (110,700 - 0)/9 = 12,300 per year

Book value on the date the asset is discarded

= 110,700 - (12,300*7.5 years)

= 110,700 - 92,250

= 18,450 loss

Option B