What are the best ways to calculate the loss on sale of old car?

Question

Actually we sold our old car and want to know the loss asper accounting principles. Howmuch we got loss. Shall we calculate loss on market value, Book Value or Face Value. Which is the best way to calculate minimum loss on sold car?

Answer 1

In accounting, you compare the book value of the car with the sale proceeds and the difference is your gain or loss. Book value is your original cost minus the depreciation of all the years you've had the car.