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. A company sells a plant asset that originally cost $180,000 for $60,000 on December 31, 2007. The accumulated depreciation account had a balance of $90,000 after the current year's depreciation of $15,000 had been recorded. The company should recognize a
a. $30,000 loss on disposal.
b. $30,000 gain on disposal.
c. $60,000 loss on disposal.
d. $60,000 gain on disposal.

Answer :

Karabo99

Answer:

a. $30,000 loss on disposal.

Explanation:

Book value = $180,000 - $90,000

                   = $90,000

loss of disposal = $60,000 - $90,000

                          = $30,000

Therefore, There is a loss of disposal at $30,000

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