Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 13P
icon
Related questions
Question
On September 30. 2020, Nixon Company decided to dispose its manufacturing plant located in Maguindanao Province. The plant is carried at a cost of P8,00,.000 with accumulated depreciation of P3,200,000 at December 31, 2019. Annual depreciation on the plant since it was acquired was consistently provided at 8% per year based on cost. The company has not yet recorded depreciation for 2020.

The company undertook all the necessary actions to be able to classify the asset as held for sale. On September 30, 2020, Nixon estimated that it could sell the plant at its fair value of P4,900,000 after incurring estimated selling costs of P400,000.

On December 20, 2020, Nixon Company sold the plant for P4,950,000 and paid disposal costs of P350,000.

How much Is the gain on sale of Maguindanao plant?
 
A. P280,000
B. P200,000
C. PI80,000
D. P100,000
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage