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Question · Gain or loss on disposal

Kelvane replaces the roof of an investment property. The new roof, which meets the recognition criteria, costs 380,000, paid in cash. The old roof was included in the carrying amount of the property at 95,000 (case data) and has no disposal value. The entity applies the cost model. Record the entry.

Cost of the new roof
380,000
Carrying amount of the old roof
95,000
Your answer
  1. Line 1

    Account Investment property (new roof)

  2. Line 2

    Account Loss on derecognition of the replaced part

  3. Line 3

    Account Cash

  4. Line 4

    Account Investment property (old roof)

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