How much is the gain from the sale of the old cooler

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Q1. An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000. A new cooler with marked price of P200,00 was purchased on February 10, 2021. Freight charge of P3,000 and installation cost of P6,000 were paid. How much is the gain (-loss) from the sale of the old cooler?

Q2. King Company purchased a machine on July 1, 2021 for P600,000. The machine has an estimated useful life of five years and a salvage value of P80,000. The machine is being depreciated from the date of acquisition by the 150% declining balance method. For the year ended December 31, 2021, King should record depreciation expense on this machine of?

Q3. The SYD method of depreciation is being used for a machine with a five-year estimated useful life. What would be the fraction applied to the depreciable cost to be depreciated in the fourth year?

Reference no: EM132993953

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