A company purchases a machine with an expected useful life of 6 years for $9,000. After two years of use, management revised the expected useful life to 8 years. The machine is to be depreciated at 30% per annum on the reducing balance basis. A full year's depreciation is charged in the year of purchase, with none in the year of sale. During year 4, it is sold for $3,000. What is the profit or loss on disposal?? $1,000 profit|$840 profit|$87 loss|$1,410 profit
举一反三
- A business has net assets of $60,000 at the beginning of the year and $85,000 at the end of the year. Drawings were $17,000 and a lottery win of $3,000 was paid into the business during the year. What was the profit for the year? A: $11,000 loss B: $39,000 loss C: $11,000 profit D: $39,000 profit
- A company uses the machine hours method to depreciate the machinery in its factory. A machine that cost $120,000 has an estimated residual value of $30,000 at the end of its four-year useful operating life. Usage over the four years is expected to be:What is the depreciation charge for the machine in Year 3? A: $23,333 B: $31,111 C: $38,889 D: $76,667
- R company sold old equipment for $25 000. The equipment had a cost of $50 000 and accumulated depreciation of $30 000. The entry to record the sale of the equipment would include a ( ). A: loss on disposal of $25 000 B: gain on disposal of $25 000 C: loss on disposal of $5 000 D: gain on disposal of $5 000
- What is the payback if the initial investment is $60,000 and the cash flows are? ( )Year 1$20,000Year 2$25,000Year 3$30,000Year 4$10,000Year 5$5,000 A: 1.75 years B: 2.25 years C: 2.50 years D: 2.45 years
- The movie company’s profit this year is greater than that of many other companies. (s___________) (Para. 4)