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
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem 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?
а. 140,000
b. 260,000
с. 620,000
d. 980,000
(AICR A
(ATCD A Adonto
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