Recognition QUESTION 2 (12 marks) Nyams Ltd acquired machinery on 1 January 2016 at a cost of P400 000. A residual value of P40 000 and a useful life of 10 years was assumed for the purposes of depreciation charges. On 1 January 2018 the asset was classified as held for sale. Its fair value was estimated at P280 000 and the costs to sell at P10 000. The asset was sold on 1 July 2018 for P260 000. Required: a) Show the journal entry to record the classification as held for sale. b) Show the effects on profit and loss of the classification as held for sale and of the disposal