Sensible Company sold an item of plant and machinery on January 1, 2010 for P2,500,000,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Sensible Company sold an item of plant and machinery on January 1, 2010 for P2,500,000, it's fair value, when its carrying amount was P2,000,000. Sensible company leased the item back on that date for 5 years, the item's remaining useful life. Lease payments are P700,000 on January 1 each year. What is the profit on disposal to be recognized in profit or loss for 2010? *
A. 250,000
B. 0
C. 100,000
D. 500,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
