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? Group of answer choices 27,500 23,500 3,500 24,000
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? Group of answer choices 27,500 23,500 3,500 24,000
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 76P
Related questions
Question
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?
Group of answer choices
27,500
23,500
3,500
24,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning