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

Q

In the last semester's final finance exam there was this exercise: (You) got a bit info about...

Finance
Q

How much of a change in freezing point would the ocean experience if the glaciers and...

Chemistry
Q

1.The Cu2+ ions in this experiment are produced by the reaction of 1.0g of copper turnings...

Chemistry
Q

A sample of an unknown material appears to weigh 300 N in air and 222 N...

Physics
Q

What is the role of regulatory commissions? How do the courts complement that role?

General Management
Q

On 1 July the Winter Shoe Store paid $6,000 to Ace Realty for 6 month’s rent...

Accounting
Q

24 A AAS B Not enough information C HL D ASA

Geometry
Q

You randomly select an integer from 0 to 39 inclusively and then randomly select an...

Statistics
Q

Water traveling along a straight portion of a river normally flows fastest in the middle...

Calculus
Q

Tristar Production Company began operations on September 1,2024. Listed below are a number of transactions...

Accounting
Q

Squirrels R Us uses the allowance method to account for uncollectible accounts. During the year,...

Accounting
Q

3. The following information pertains to J Company's outstanding stock for 2021: Common stock, $1...

Accounting