Find what amount should be reported as gain from sale

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Reference no: EM132772030

Problem 1: On December 31, 2020, Colorado Company sold a machinery to Chicago Company and simultaneously leased it back for 3 years. The leaseback is appropriately considered a low value lease. Sale price is P450,000, carrying amount is P360,000 and estimated remaining useful life is 5 years. What amount should be reported as gain from sale of the machinery for 2020?

Reference no: EM132772030

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