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4. An item of plant asset with a cost of P70,000, estimated life of 5 years, and residual value of P10,000, is depreciated by the straight-line method. This asset is sold for P48,000 at the end of the second year of use. The gain or loss on the disposal (indicate by "G" or "L") is P. 2015 Thie

4. An item of plant asset with a cost of P70,000, estimated life of 5 years, and residual value of P10,000, is depreciated by the straight-line method. This asset is sold for P48,000 at the end of the second year of use. The gain or loss on the disposal (indicate by "G" or "L") is P. 2015 Thie

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic: Plant Assets and Natural Resources

4. An item of plant asset with a cost of P70,000, estimated life of 5 years, and residual value of P10,000, is depreciated by the straight-line method. This asset is sold for P48,000 at the end of the second year of use. The gain or loss on the disposal (indicate by "G" or "L") is P_ 5. Oslo Corporation has a vehicle that cost P850,000 on October 1, 2015. This old vehicle had an estimated life of ten years and a residual value of P50,000, On June 30, 2020, the old vehicle is traded in for a new vehicle. Oslo was offered a trade-in of P500,000 on the old vehicle and the cash payment was P90,000 to acquire the new vehicle. The straight-line depreciation method is used. The amount of gain or loss to be recognized by Oslo Corporation on the trade-in of the old vehicle is P
Transcribed Image Text:4. An item of plant asset with a cost of P70,000, estimated life of 5 years, and residual value of P10,000, is depreciated by the straight-line method. This asset is sold for P48,000 at the end of the second year of use. The gain or loss on the disposal (indicate by "G" or "L") is P_ 5. Oslo Corporation has a vehicle that cost P850,000 on October 1, 2015. This old vehicle had an estimated life of ten years and a residual value of P50,000, On June 30, 2020, the old vehicle is traded in for a new vehicle. Oslo was offered a trade-in of P500,000 on the old vehicle and the cash payment was P90,000 to acquire the new vehicle. The straight-line depreciation method is used. The amount of gain or loss to be recognized by Oslo Corporation on the trade-in of the old vehicle is P
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