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On 31 May 2020 a photocopying machine with a cost of $12 000 has accumulated depreciation written off of $10 000. If the machine is

  1. On 31 May 2020 a photocopying machine with a cost of $12 000 has accumulated depreciation written off of $10 000. If the machine is sold for $1 500 on 1 June 2020 what will be the net effect of the sale on the income statement?

    a.

    $500 loss.

    b.

    $500 profit.

    c.

    $1 500 loss.

    d.

    $1 500 profit.

    e.

    none of the above.

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