Ostrane sells an investment property. The price of 2,200,000 is payable in one year, which is a significant financing component (teaching assumption); the annual discount rate is 10 %. Selling costs amount to 40,000 and the carrying amount of the property is 1,900,000. Calculate the net disposal proceeds and the gain or loss on disposal.
- Price payable in one year
- 2,200,000
- Annual discount rate
- 10 %
- Selling costs
- 40,000
- Carrying amount of the property
- 1,900,000