Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
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 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

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS