Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was purchased for R.O:120,000on January1,2007, and was depreciated on a straight-line basis for 10 years with no residual value. If the machine was soldfor R.O 33,000, what was the amount of the gain or loss recorded at the time of the sale?Select one.O a RO 69,00.b RO 27.000.O CRO33,000.d RO 81,000.

As per straight line method, the depreciation is computed by dividing the original cost less salvage…

Answered: Mazaya Company has decided to sell one…

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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Mazaya Company has decided to sell one of its old machines on June 30, 2011 The machine was purchased for RO:120,000 on January 1, 20o07, and was depreciated on a straight-line basis for 10 years with no residual value f the machine was sold for R.O 33.000, what was the amount of the gain or loss recorded at thetime of the sale? Select one O a RO 69,00. b. RO 27.000. O CRO33,00 O d RO 81,000.
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As a result of the transaction, what is the effect on the profit or loss? what is the cost of the new asset acquired? with computations
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