what is a loss on sale
The current cost net book value is $7200, so if the asset is being sold for $5000, there is a resulting loss on sale of $2200. The sale price of the car is below its fair value by Rs 15.000, but the loss on sale is compensated due to the rental for the car being lower than the normal rental by Rs 10000 per year. A loss on sale is the amount of money that is lost by a company when selling a non-inventory asset for more than its value.