A firm purchased a Machine on 1 January 2011. The Machine has a 10 year life...

 

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A firm purchased a Machine on 1 January 2011. The Machine has a 10 year life and no residual value. The Cost of the Machine was $200,000. The firm uses straight line depreciation and charges depreciation on a monthly basis. The Machine was sold on 30 September 2014 for $120,000 Cash. The Gain or Loss on Disposal of the Machine is: Select one: O a. Loss of $5,000 O b. None of these answers O c. Loss of $25,000 O d. Gain of $5,000 O e. Gain of $25,000 A firm purchased a Machine on 1 January 2011. The Machine has a 10 year life and no residual value. The Cost of the Machine was $200,000. The firm uses straight line depreciation and charges depreciation on a monthly basis. The Machine was sold on 30 September 2014 for $120,000 Cash. The Gain or Loss on Disposal of the Machine is: Select one: O a. Loss of $5,000 O b. None of these answers O c. Loss of $25,000 O d. Gain of $5,000 O e. Gain of $25,000

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Given Cost machine 200000 use jul life 10 year So Using shaight line depre ciatio... View the full answer