On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated using straight line method based on a useful life of 8 years with no residual value. On January 1, 2021, after 3 years, the equipment was revalued at a replacement cost of P12,000,000 with no change in residual value. On June 30, 2021, the equipment was sold for 10,000,000. How much is the gain (loss) on sale of equipment?
On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated using straight line method based on a useful life of 8 years with no residual value. On January 1, 2021, after 3 years, the equipment was revalued at a replacement cost of P12,000,000 with no change in residual value. On June 30, 2021, the equipment was sold for 10,000,000. How much is the gain (loss) on sale of 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 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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