ABC Corporation, which has a calendar year accounting period, purchased a new machine for P80,000 on April 1, 20X0. At that time ABC expected to use the machine for nine years and then sell it for P8,000. The machine was sold for P44,000 on Sept. 30, 20X5.

Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be?

Answer rating: 100% (QA)

To calculate the gain on the sale of the machine we need to first calculate the book value of ... View the full answer