When calculating group profit or loss on disposal, which of the following is subtracted from sales proceeds?

In calculating group profit or loss on disposal, the carrying amount of net assets at disposal is subtracted from the sales proceeds to determine the gain or loss on that disposal. This is because the profit or loss on disposal is essentially the difference between what the assets were sold for (the sales proceeds) and their carrying value on the balance sheet at the time of sale. The carrying amount of net assets represents the book value of the assets that are being disposed of, which includes tangible and intangible assets as well as any liabilities associated with them.

Subtracting the carrying amount of net assets provides a clear picture of the financial outcome of the transaction, allowing stakeholders to assess whether the group realized a profit or incurred a loss as a result of the disposal. In contrast, the other options relate to different financial aspects that do not represent the calculation basis for profit or loss on disposal. For instance, negative goodwill pertains to acquisitions and not directly to disposals, estimated future profits do not factor into the calculation as they are projections rather than realized amounts, and market value reflects current worth rather than the recorded costs needed for this specific calculation.