Question

The sale of equipment costing Rs. 8,000, with accumulated depreciation of Rs. 6,700 and sale price of Rs. 2,000, would result in a?​

Answer 1

Answer:

Yes, Option B is the right answer

Explanation:

Mark brainlist

Answer 2

Given:

Cost of equipment=Rs. 8,000

Accumulated depreciation=Rs. 6,700

Sale price=Rs. 2,000

To find:

Profit/ Loss on sale

Solution:

The sale of equipment would result in a profit of Rs. 700.

We can find the profit by following the given steps-

We know that when the sale price is higher than the cost price, a profit is earned.

So, profit= Sale price of the equipment-(cost price of the equipment-accumulated depreciation)

We know that the accumulated depreciation is deducted from the cost of the equipment.

So, cost after depreciation=Cost of equipment-accumulated depreciation

=8000-6700

=Rs.1300

So, profit on equipment=2000-1300

=Rs.700

Therefore, the sale of equipment would result in a profit of Rs. 700.