A firm purchased a Machine on 1 January 2010. The Machine has a 5 year life and no residual value. The Cost of the Machine was $100,000. The firm uses straight line depreciation and charges depreciation on a monthly basis. The Machine was sold on 30 September 2013 for $20,000 Cash The Gain or Loss on Disposal of the Machine is: Select one: O a None of these answers O b. Loss of $25,000 O c. Gain of $25,000 d. Loss of $5,000 O e. Gain of $5,000

A firm purchased a Machine on 1 January 2010. The Machine has a 5 year life and no residual value. The Cost of the Machine was $100,000. The firm uses straight line depreciation and charges depreciation on a monthly basis. The Machine was sold on 30 September 2013 for $20,000 Cash The Gain or Loss on Disposal of the Machine is: Select one: O a None of these answers O b. Loss of $25,000 O c. Gain of $25,000 d. Loss of $5,000 O e. Gain of $5,000

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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