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6. On January 1, 20x1, Entity A acquires a building to be held as investment property for a total cost of P1,500,000. The building is estimated to have a 30-year useful life and a 5% residual value. Entity A uses the straight-line method of depreciation. On December 31, 20x5, Entity A sells the building for P1,300,000. How much is gain (loss) on the sale? а. 35,700 b. 37,500 с. 53,700 d. 75,300

6. On January 1, 20x1, Entity A acquires a building to be held as investment property for a total cost of P1,500,000. The building is estimated to have a 30-year useful life and a 5% residual value. Entity A uses the straight-line method of depreciation. On December 31, 20x5, Entity A sells the building for P1,300,000. How much is gain (loss) on the sale? а. 35,700 b. 37,500 с. 53,700 d. 75,300

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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6. On January 1, 20x1, Entity A acquires a building to be held as investment property for a total cost of P1,500,000. The building is estimated to have a 30-year useful life and a 5% residual value. Entity A uses the straight-line method of depreciation. On December 31, 20x5, Entity A sells the building for P1,300,000. How much is gain (loss) on the sale? а. 35,700 b. 37,500 с. 53,700 d. 75,300
Transcribed Image Text:6. On January 1, 20x1, Entity A acquires a building to be held as investment property for a total cost of P1,500,000. The building is estimated to have a 30-year useful life and a 5% residual value. Entity A uses the straight-line method of depreciation. On December 31, 20x5, Entity A sells the building for P1,300,000. How much is gain (loss) on the sale? а. 35,700 b. 37,500 с. 53,700 d. 75,300
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