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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 claims. How much is the net gain or loss from the disposal of the assets above? a. 3,500 b.23,500 c.24,000 d.27,500

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 claims. How much is the net gain or loss from the disposal of the assets above? a. 3,500 b.23,500 c.24,000 d.27,500

Cornerstones of Financial Accounting
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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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 claims.

How much is the net gain or loss from the disposal of the assets above?


a. 3,500

b.23,500

c.24,000

d.27,500

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