oblem 27-7 (AICPA Adapted) Parable Company revealed the following depreciation policy on machinery: A full year depreciation is taken in the year of acquisition. No depreciation is taken in the year of disposition. The estimated useful life is five years. The straight line method is used. On June 30, 2020, the entity sold for P2,300,000 a machine acquired in 2017 for P4,200,000. The estimated residual value was P600,000. What amount of gain on disposal should be recorded in 2020? a. 140,000 b. 260,000 c. 620,000 d. 980,000 (ATC DA 11

oblem 27-7 (AICPA Adapted) Parable Company revealed the following depreciation policy on machinery: A full year depreciation is taken in the year of acquisition. No depreciation is taken in the year of disposition. The estimated useful life is five years. The straight line method is used. On June 30, 2020, the entity sold for P2,300,000 a machine acquired in 2017 for P4,200,000. The estimated residual value was P600,000. What amount of gain on disposal should be recorded in 2020? a. 140,000 b. 260,000 c. 620,000 d. 980,000 (ATC DA 11

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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