☝️ Single
AF-02 · Multi-part (shared scenario)
A company bought equipment for £120,000 on 1 January 2026. Its useful life is 5 years, its residual value is £20,000 and it uses straight-line depreciation. On 31 December 2027 the equipment was sold for £60,000.
Where is the loss on disposal presented? [2 marks]
In profit or loss
In other comprehensive income
As a reduction of share capital
Directly in retained earnings