Maroon Company's depreciation policy on machinery and equipment is as follows:· A full year's depreciation is take in the year of an asset's acquisition• No depreciation is take in the year of an asset's dispositionThe estimated useful life is five years• The straight-line method is usedOn June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. Theaccumulated depreciation was P216,000 at December 31, 2020, and the original estimated salvagevalue was P60,000.How much was the gain or loss on the disposal should Maroon record in 2021?O 34,000 lossO 14,000 gainO26.000 lossO 26.000 gain

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On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated depreciation was P216,000 at December 31, 2020, and the original estimated salvage value was P60,000.

On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated depreciation was P216,000 at December 31, 2020, and the original estimated salvage value was P60,000.

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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