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5.: The total sale of Magsasaka from its farm products and farm equipment is 'P400,000 and P50,000, respectiveiy. The cost of production amounts to P240,000 while the book value of farm equipment at the time of sale was P35,000. The other income of the farm amount to P12,500. Its beginning inventory was P125,500 while the ending inventory was. P175,000. f Magsasaka is using cash method of accounting, how much is his gross income during the year? P187,500 C. d. 138,000 462,500 a. b. 172,500

5.: The total sale of Magsasaka from its farm products and farm equipment is 'P400,000 and P50,000, respectiveiy. The cost of production amounts to P240,000 while the book value of farm equipment at the time of sale was P35,000. The other income of the farm amount to P12,500. Its beginning inventory was P125,500 while the ending inventory was. P175,000. f Magsasaka is using cash method of accounting, how much is his gross income during the year? P187,500 C. d. 138,000 462,500 a. b. 172,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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5. The total sale of Magsasaka from its farm products and farm equipment is P400,000 and P50,000, respectiveiy. The cost of production amounts to P240,000 while the book value of farm equipment at the time of sale was P35,000. The other income of the farm amount to P12,500. Its beginning inventory was P125,500 while the ending inventory was. P175,000. If Magsasaka is using cash method of accounting, how much is his gross income during the year? P187,500 172,500 138,000 :C. d. 462,500 a. b. CS Scanned with CamScanner
Transcribed Image Text:5. The total sale of Magsasaka from its farm products and farm equipment is P400,000 and P50,000, respectiveiy. The cost of production amounts to P240,000 while the book value of farm equipment at the time of sale was P35,000. The other income of the farm amount to P12,500. Its beginning inventory was P125,500 while the ending inventory was. P175,000. If Magsasaka is using cash method of accounting, how much is his gross income during the year? P187,500 172,500 138,000 :C. d. 462,500 a. b. CS Scanned with CamScanner
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