A fixed asset with a cost of $15,000 and accumulated depreciation of $12,500 is sold for $1,750.What is the amount of gain or loss on disposal of the fixed asset?
A) $750 loss
B) $2,500 loss
C) $2,500 gain
D) $750 gain

Question

Quizplus · Accepted Answer

The cost of the fixed asset is $15,000 and the accumulated depreciation is $12,500, which means that the book value or carrying value of the asset is $2,500 ($15,000 - $12,500). The sale price of the asset is $1,750, which is lower than its book value, resulting in a loss on disposal. The amount of the loss is $750 ($2,500 - $1,750). Therefore, the correct answer is A) $750 loss.

A Fixed Asset with a Cost of $15,000 and Accumulated