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 disposition The estimated useful life is five years The straight-line method is used 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. How much was the gain or loss on the disposal should Maroon record in 2021?

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 disposition The estimated useful life is five years The straight-line method is used 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. How much was the gain or loss on the disposal should Maroon record in 2021?

Name: Maroon Company’s depreciation policy on machinery and equipment is as
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Description: 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 acquisitionNo depreciation is take in the year of an asset’s dispositionThe estimated useful life is five years

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

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