On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated depreciation of P400,000 to Cake Company. Bake received a downpayment of P100,000 and a 9% non-interest-bearing note, P1,000,000 due on December 31, 2025. Note: Round off present value factors up to four decimal points; round off the final value up to two decimal points. E.g., 0.7812 and 123,518.25 What is the gain/loss from selling the equipment?

On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated depreciation of P400,000 to Cake Company. Bake received a downpayment of P100,000 and a 9% non-interest-bearing note, P1,000,000 due on December 31, 2025. Note: Round off present value factors up to four decimal points; round off the final value up to two decimal points. E.g., 0.7812 and 123,518.25 What is the gain/loss from selling the equipment?

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 11MCQ

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