Jayanne Company acquired an equipment for P4,200,000 in 2018. The policy is straight line depreciation, full depreciation in the year of acquisition and no depreciation in the year of disposal. The useful life is five years with residual value of P200,000. On July 1, 2021, the equipment was sold for P2,500,000. What is the gain on disposal in 2021?

Jayanne Company acquired an equipment for P4,200,000 in 2018. The policy is straight line depreciation, full depreciation in the year of acquisition and no depreciation in the year of disposal. The useful life is five years with residual value of P200,000. On July 1, 2021, the equipment was sold for P2,500,000. What is the gain on disposal in 2021?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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