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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8b39146-650c-4a14-8cc1-963dd9f7cff3%2Fad7de9bd-85f1-45ea-bc5e-9da8cde5baa9%2F86sqbbe_processed.png&w=3840&q=75)
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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