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John Smith purchases a machine on July 1, 2018. The machine was purchased on credit for $660,000 ($600,000 + $60,000 GST). The machine has an
John Smith purchases a machine on July 1, 2018. The machine was purchased on credit for $660,000 ($600,000 + $60,000 GST). The machine has an expected life of 4 years and an expected residual value of $220,000,($200,000 + $20,000GST). The machine was sold on January 1, 2020 for $385,000 ($350,000 + $35,000 GST). The company uses straight-line depreciation. Calculate the gain / loss on disposal.
Select one:
a. 350,000 gain on sale
b. 100,000 gain on sale
c. 135,000 gain on sale
d. 125,000 gain on sale
e. 100,000 loss on sale
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