Mathematics · Accounting and Depreciation
An entity with a 30 September reporting date purchased a machine on 1 April 20X3 for $200,000. The machine had an estimated useful life of eight years and is depreciated at 25% per annum using the reducing (diminishing) balance method. On 31 January 20X6, the machine was sold for $90,000. Full year's depreciation is charged in the years of purchase and disposal. What is the profit or loss on disposal to be included in the statement of profit or loss for the year ended 30 September 20X6?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Profit of $26,719✓
- 2Profit of $5,625
- 3Loss of $10,000
- 4Loss of $22,500
Correct answer
Profit of $26,719
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