Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sensible company sold an item of plant and machine

Sensible Company sold an item of plant and machinery on January 1, 2010 for P2,500,000,...

60.1K

Verified Solution

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

Consider the triangle below b a 10 60

Accounting
1.2K views

1. You decide to buy a new car. You negotiate with the dealerand get...

Statistics
1.2K views

1. In a presidential election, 308 out of 611 voters surveyed said that they voted for...

General Management
1.2K views

Hooters, Inc.: A Macro-Marketing Evaluation All economies must have a macro-marketing system. The economies may take many...

Geometry
1.2K views

x A guy wire is attached to a pole the ground at a point 137...

Basic Math
1.2K views

A circular backyard pool has a diameter of 24 feet and is 3 feet deep....

Statistics
1.2K views

Suppose 241 subjects are treated with a drug that is used to treat pain and...

Calculus
1.2K views

11 1 2 6 5 4 1 0 1 2 3 4 f t TT...

Calculus
1.2K views

If 4x 5x xy 2 and y 2 12 find y 2 by implicit differentiation

Calculus
1.2K views

Solve the absolute value equation.3|2x 6| + 7 = 22

Accounting
1.2K views

What is the purpose of accounting in society?

Accounting
1.2K views

Sheffield Tool Corp. records depreciation annually at the end of the year. Its policy is...