Business Studies, asked by ismailmemon, 11 months ago

If we sell an asset costing 30000 whose book value is 18000 after depriciation at 20000 (sale value). Than the profit is treated as revenue profit. I want to ask that why it is considered revenue profit although it is not recurring in nature... NOTE: WE ARE NOT DEALING IN ASSET BUSINESS​

Answers

Answered by Anonymous
0

Explanation:

It is a common practice to exchange a used PPE asset for a new one. This is known as a trade-in. The value of the trade-in agreed by the purchaser and seller is called the trade-in allowance. This amount is applied to the purchase price of the new asset, and the purchaser pays the difference. For instance, if the cost of a new asset is $10,000 and a trade-in allowance of $6,000 is given for the old asset, the purchaser will pay $4,000 ($10,000 – 6,000).

Answered by UrvashiBaliyan
0

Answer:

Explanation:

It is a common practice to exchange a used PPE asset for a new one. This is known as a trade-in. The value of the trade-in agreed by the purchaser and seller is called the trade-in allowance. This amount is applied to the purchase price of the new asset, and the purchaser pays the difference. For instance, if the cost of a new asset is $10,000 and a trade-in allowance of $6,000 is given for the old asset, the purchaser will pay $4,000 ($10,000 – 6,000).

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