was the gain/ loss on the sale of the machine?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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Question
![DOPEY Company purchased a machine on
March 10, 2019 with a total cost of
P1,600,000. The machine's estimated
useful life was 8 years with an estimated
residual value of P100,000. The company
uses the straight-line method of computing
depreciation and had the policy of
computing depreciation to the nearest full
month. Because of technological changes
the company decided to sell the machine on
November 30,2022, for P500,000. What
was the gain/ loss on the sale of the
machine?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b61efc9-b063-434b-99d0-0ba06285ba89%2F2d83f3bf-62ab-43aa-b763-c86340236ab1%2Fclwzz18_processed.jpeg&w=3840&q=75)
Transcribed Image Text:DOPEY Company purchased a machine on
March 10, 2019 with a total cost of
P1,600,000. The machine's estimated
useful life was 8 years with an estimated
residual value of P100,000. The company
uses the straight-line method of computing
depreciation and had the policy of
computing depreciation to the nearest full
month. Because of technological changes
the company decided to sell the machine on
November 30,2022, for P500,000. What
was the gain/ loss on the sale of the
machine?
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