Question: (A) Problem 27-7 (Page 790): Straight-line Method with Specific Accounting Policy: Parable Company: Parable Company revealed the following depreciation policy on machinery: A full year

(A) Problem 27-7 (Page 790): Straight-line Method with Specific Accounting Policy: Parable Company: Parable Company revealed the following depreciation policy on machinery: A full year depreciation is taken in the year of acquisition. No depreciation is taken in the year of disposition. The estimated useful life is five years. The straight line method is used. On June 30, 2020, the entity sold for P2,300,900 a machine acquired in 2017 for P4, 200,000. The estimated residual value was P600,000. 1. What amount of gain on disposal should be recorded in 2020? a. P 140,000 b. P 260,000 c. P 620,000 d. P 980,000

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