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Chapter 6
Example 3
R purchased a machine at a cost of $25,000 on 1 April 20X2. The machine
was sold for $6,500 on 31 March 20X6. At that date, accumulated depreciation
on the machine amounted to $17,000.
Required:
What was the profit or loss on disposal of the machine?
Example 3: Solution
$
Sale proceeds
Less: carrying amount of machine at disposal date:
Cost of machine
Less: accumulated depreciation
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