Question: The company bought a machine for $ 4 0 , 0 0 0 in January year 1 . The machine had an expected useful life
The company bought a machine for $ in January year The machine had an expected useful life of six years and an expected residual value of $ The machine was depreciated on the straight line basis where a full year's charge is made in the year of purchase and none in the year of sale. In December year the machine was sold for $ The company has a policy in its internal accounts of combining the depreciation charge with the profit or loss on disposal of assets. Its year end is December. What is the total amount of profitloss charged to the statement of profit or loss over the life of the machine?
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