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Question · Gain or loss on derecognition

An entity sells for cash, for 70,000, a business software asset acquired for 150,000 and amortised by 90,000 at the date of sale. No costs of disposal are incurred. Record the derecognition entry.

Acquisition cost of the software
150,000
Accumulated amortisation
90,000
Selling price received
70,000
Your answer
  1. Line 1

    Account Cash — price received

  2. Line 2

    Account Accumulated amortisation of intangible assets

  3. Line 3

    Account Intangible assets — cost of the software

  4. Line 4

    Account Gain on disposal of intangible assets

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