On January 1, 2019, Kong Company owned a machinery having a carrying amount of P240,000. The machine was purchased four years ago for P400,000. Kong uses straight-line depreciation. Kong determined that the machine suffered permanent impairment of its operational value and will not be economically useful in its production process after December 31, 2019. Kong sold the machine for P65,000 on January 5, 2020. The financial statements for 2019 were issued on February 15, 2020. In its statement of comprehensive income for the year ended December 31, 2019, Kong should recognize a loss of

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Q: was the gain/ loss on the sale of the machine?

A: Solution   Prepared the Machinery Account for Calculate the Gain or Loss on sale of Machinery

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A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

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A: Formula: Rate of Deprecation for DDB= 100%Life of Asset×2 Rate of Depreciation for SL= 100%Remaining…

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A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease in the…

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A: Depreciation: It is the gradual fall in the value of asset due to its normal usage in the production…

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A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

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A: Answer:Journal Entries for ABC Corp for the year 2020:To record the acquisition of machinery on…

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A: Fair value less cost to sell = Fair value on date of classification as held for sale - Estimated…

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A: Non Current will be held for sale when that asset is used for the business for the maximum and now…

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A: Lets understand the basics. Change in depreciation method is known as a change in accounting policy.…

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