FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SHOW YOUR SOLUTION. On January 1,2015, DRGE Co. sold a machinery with a historical cost of P1,000,000 and accumulated depreciation of P200,000 in exchange for

SHOW YOUR SOLUTION.

On January 1,2015, DRGE Co. sold a machinery with a historical cost of P1,000,000 and accumulated depreciation of P200,000 in exchange for cash of P180,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2018. The prevailing rate of interest for this type of note is 11%. What is the net effect of the transaction in DRGE's 2015 profit or loss?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Auditing

Practical Auditing

Authors: Ernest Evan Spicer, Ernest Charles Pegler

17th Edition

0406678014, 9780406678010

More Books

Students also viewed these Accounting questions

Question

★★★★★
What is shopper marketing and how might retailers use Wi-Fi technology to implement it?

Answered: 1 week ago

Question

★★★★★
How is variable cost per unit calculated?

Answered: 1 week ago

Question

★★★★★
For s Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2019. The trial balance at May 31 is as follows. In addition to those accounts listed on the trial balance, the chart...

Answered: 1 week ago

Question

★★★★★
I NEED TO USE MATLAB FORMAT Part A: Write a function that meets the following expectations: Function name: A_fnExample_123 Inputs: g b Outputs: x t Operations to be coded within the function: x = 17...

Answered: 1 week ago

Question

★★★★★
What items could cause equilibrium quantity to go up? A) demand goes up B) demand goes down C) supply goes up D) supply goes down

Answered: 1 week ago

Question

★★★★★
Question 1 Title: Evaluate/Asses Ford South Africa Motor Company's Corporate Social Investment Strategy/Plan over the last 5 years. Who were the beneficiaries? How did they benefit? How successful...

Answered: 1 week ago

Question

★★★★★
Mawar manufacturing provides photocopy machines. Each time the machines breakdown, the company estimates that it loses an average of RM 500 in time and service expenses. One of the alternatives in...

Answered: 1 week ago

Question

★★★★★
WHAT TO EXPECT THIS WEEK How might Ethelo achieve greater financial sustainability with their climate focused products and services when serving smaller municipalities? Section 1-Define the business...

Answered: 1 week ago

Question

★★★★★
Capturing Good Memories During the Pandemic The Pandemic has been affecting the entire world for more than two years now. Despite the government's recently relaxed rules, most industries still have...

Answered: 1 week ago

Question

★★★★★
Describe Samsung Electronics' Internal Quality Management Program. What are the key components? Provide an assessment of Samsung Electronics' Internal Quality Management Program. Does the plan appear...

Answered: 1 week ago

Question

★★★★★
Using some of the ideas in case study 12.4, consider proposals to change the recruitment of one key job in your organisation that would aim to reduce the attrition rate.

Answered: 1 week ago

Question

★★★★★
In the CIPD labour turnover research, the cost of replacement of employees who leave is high. Why is this?

Answered: 1 week ago

Question

★★★★★
Set out the arguments for and against instituting a legal requirement for a quota of women on boards of private companies

Answered: 1 week ago

Previous Question Next Question