Depreciation and loss on sale of fixed asset are typically calculated based on the original cost or value of the fixed asset.
Depreciation is the gradual decrease in the value of a fixed asset over time and is spread out over the useful life of the asset. The $3,502 amount is likely the annual depreciation expense for a fixed asset.
Loss on sale of a fixed asset occurs when the sales price of the asset is less than its book value (original cost minus accumulated depreciation). The $2,237 amount represents the difference between the book value of the fixed asset and the actual sales price when it was sold.
These amounts are calculated based on accounting principles and are used to accurately reflect the value of fixed assets on the company's financial statements.
dd: Depreciation 3,502
Less: Loss on sale of fixed asset 2,237
How did you get this amounts
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