Question
The cost of an asset on 01-01-2002 is 5,00,000 and its
life is 10 years with salvage value is zero. If it is sold on 31-12-2008 for 50,000 than calculate the net profit/loss realizedSolution
We first need to calculate the depreciated value of the asset at 31-12-2008 and compare it with the sale price to calculate the profit or loss realized. Depreciation is to be considered for 7 years (i.e. 2002 to 2008). Step 1 – calculating per year depreciation assuming, straight line method Depreciation per year = (cost-salvage value) /number of yrs = (5,00,000 – 0)/10 = 50,000 per year Step 2 – calculating depreciated value of the asset So depreciation of 7 years = 50000*7 = 3,50,000 As such, the written down value at end of 7th year = cost – depreciation for 7 years = 5,00,000 – 3,50,000 = 1,50,000 Step 3 – calculating the profit/loss Profit = sale price - depreciated value = 50,000-1,50,000 = Net loss of 1,00,000
Getting fired from my job has added to my ________; but I will not fall down.
The opinions of the state and central governments were ____________ on the new policy.
This cream helps _________ the skin from harmful radiation from the sun.
Companies have to ________ their unwanted expenditures to function smoothly.
Even though he knew he was right, he did not have the courage to openly ___________ a majority decision.
The news about the marriage of a celebrity __________ the one about India entering the finals in Asia Cup.
The government is trying hard to ___________the MSME sector from the loss inflicted by the pandemic.
These telemarketers have been calling me ___________, even though I said I was not interested in their product.
All flights were cancelled due to heavy rainfall and the passengers were __________ at the airport.
Given his grandmother’s health condition, he’ll now have to ___________ money for a full-time nurse.
