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On Ist January, 1993, lobo Company purchased equipment for ₦18,000. it uses st...


Question

On Ist January, 1993, lobo Company purchased equipment for ₦18,000. it uses straight-line depreciation and estimates an eight-year useful life and a ₦2,000 salvage value. On 31st December, 1996, it sells the equipment for ₦80,0000. In recording this sales, it should reflect?

Options

A)
₦10,000 loss
B)
₦2,000 loss
C)
₦6,000 gain
D)
₦8,000 gain

The correct answer is C.


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