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Marshall Fabrics sold a machine on 30 April 2023. The machine originally cost $22,000 and was being depreciated using the diminishing balance method at 35%
Marshall Fabrics sold a machine on 30 April 2023. The machine originally cost $22,000 and was being depreciated using the diminishing balance method at 35% per annum. After depreciation was charged on 30 June 2022, the balance of accumulated depreciation on the machine was $13,200. Balance date is 30 June. How much additional depreciation was recorded for the machine on the date of sale? What was the carrying amount of the machine when it was sold? Calculate the gain or loss on sale assuming the machine was sold for $5,500 including GST
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