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Calculate the gain or loss on the disposal of the machine

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Reference no: EM132359866

Question :

An accountant is making end of year adjustments in order to prepare the ?nancial statements for Daweh Ltd. During 20x7, a machine which had cost 7 £520,000 and which had an accumulated depreciation of £416,000, was sold for £100,000. At the end of 20X6, Daweh Ltd's balance sheet shows a total machinery cost of £1 ,625,000 with a total accumulated depreciation on n machinery of £675,000.

Daweh Ltd depreciates its machines using the straight-line method over 10 years with no residual value. No depreciation is 13 charged on a machine for the year in which that machine is sold.

Calculate the gain or loss on the disposal of the machine, and calculate the I annual depreciation on machinery expense for 20x7.

Reference no: EM132359866

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