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Book value of machinery is 50000$ and the accumulated depreciation is 35000$. Now the machinery is sold off for 10000$. Calculate Net profit/ loss?

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Question added by Saurabh Aggarwal , Associate Manager , Ernst & Young LLP
Date Posted: 2015/07/08

Net loss of $5,000 since the cost or book value exceeds the accumulated depreciation and sales value as illustrated below;

 

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Net Profit of5000$ value of machinery less depreciation less sale value = profit / loss

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