The following are available from Pinkish Gambino: Machinery Equipment Cost of Acquisition P560,000 P140,000 Estimated Salvage Value 60,000 20,000 Date of Acquisition January 1, 2020 July 1, 2020 Estimated Life 10 years 5 years On October 1, 2023, the above machinery was sold for P400,000 while the equipment could no longer be used on March 31, 2023 and the company received P50.000 from the insurers in full settlement of the claim. How much is the net gain or net loss from the disposal of the assets above? O3.500 24,000 O23.500 O 27,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following are available from Pinkish Gambino:
Machinery
Equipment
Cost of Acquisition
P560,000
P140,000
Estimated Salvage Value
60,000
20,000
Date of Acquisition
January 1, 2020
July 1, 2020
Estimated Life
10 years
5 years
On October 1, 2023, the above machinery was sold for P400,000 while the equipment could no
longer be used on March 31, 2023 and the company received P50.000 from the insurers in full
settlement of the claim.
How much is the net gain or net loss from the disposal of the assets above?
O3.500
O 24,000
O23,500
O 27,500
Transcribed Image Text:The following are available from Pinkish Gambino: Machinery Equipment Cost of Acquisition P560,000 P140,000 Estimated Salvage Value 60,000 20,000 Date of Acquisition January 1, 2020 July 1, 2020 Estimated Life 10 years 5 years On October 1, 2023, the above machinery was sold for P400,000 while the equipment could no longer be used on March 31, 2023 and the company received P50.000 from the insurers in full settlement of the claim. How much is the net gain or net loss from the disposal of the assets above? O3.500 O 24,000 O23,500 O 27,500
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