Question

16. Gupta Bros. paid **87,000 for a fixed asset which is expected to last for seven years. It is to be written
off on the Straight Line basis, assuming ultimate salvage proceeds 3,000.
Calculate the amount of annual depreciation of the asset and ascertain the profit or loss on disposal,
the asset is actually sold for :
(i) * 45,000 at the end of 4th year;
(ii) 25,000 at the end of 5th year ;
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Answer 1

Answer:

16. Gupta Bros. paid **87,000 for a fixed asset which is expected to last for seven years. It is to be written

off on the Straight Line basis, assuming ultimate salvage proceeds 3,000.

Calculate the amount of annual depreciation of the asset and ascertain the profit or loss on disposal,

the asset is actually sold for :

(i) * 45,000 at the end of 4th year;

(ii) 25,000 at the end of 5th year ;

16. Gupta Bros. paid **87,000 for a fixed asset which is expected to last for seven years. It is to be written

off on the Straight Line basis, assuming ultimate salvage proceeds 3,000.

Calculate the amount of annual depreciation of the asset and ascertain the profit or loss on disposal,

the asset is actually sold for :

(i) * 45,000 at the end of 4th year;

(ii) 25,000 at the end of 5th year ;

16. Gupta Bros. paid **87,000 for a fixed asset which is expected to last for seven years. It is to be written

off on the Straight Line basis, assuming ultimate salvage proceeds 3,000.

Calculate the amount of annual depreciation of the asset and ascertain the profit or loss on disposal,

the asset is actually sold for :

(i) * 45,000 at the end of 4th year;

(ii) 25,000 at the end of 5th year ;

16. Gupta Bros. paid **87,000 for a fixed asset which is expected to last for seven years. It is to be written

off on the Straight Line basis, assuming ultimate salvage proceeds 3,000.

Calculate the amount of annual depreciation of the asset and ascertain the profit or loss on disposal,

the asset is actually sold for :

(i) * 45,000 at the end of 4th year;

(ii) 25,000 at the end of 5th year ;