Answer:
The result of the disposal transaction is neither a loss or a profit
Explanation:
The expression for the book value is as shown;
B.V=P.C-A.D
where;
B.V=book value
P.C=purchase cost
A.D=accumulated depreciation
In our case;
B.V=unknown
P.C=$48,000
A.D=$31,000
replacing;
Book value=48,000-31,000=$17,000
The profit or loss from the sale of the machine, can be expressed as;
profit/loss=sales price-book value
where;
sales price=17,000
book value=17,000
profit/loss=17,000-17,000=0
The result of the disposal transaction is neither a loss or a profit
