Use the information below to answer the following questions:
Tanner Ltd purchased an item of equipment on the first day of the financial period, 1 July 2010, for $200 000. The equipment was depreciated using the reducing balance method and a rate of 40%. It was sold on 1 July 2012.
-If the machine was sold for $59 000 on 1 July 2011,what was the gain or loss on disposal?
A) loss of $21 000
B) loss of $59 000
C) loss of $61 000
D) loss of $13 000.

Question

Use the information below to answer the following questions:
Tanner Ltd purchased an item of equipment on the first day of the financial period, 1 July 2010, for $200 000. The equipment was depreciated using the reducing balance method and a rate of 40%. It was sold on 1 July 2012. 
-If the machine was sold for $59 000 on 1 July 2011,what was the gain or loss on disposal?
A) loss of $21 000
B) loss of $59 000
C) loss of $61 000
D) loss of $13 000.

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following questions:
Tanner Ltd purchased an item of equipment on the first day of the financial period, 1 July 2010, for $200 000. The equipment was depreciated using the reducing balance method and a rate of 40%. It was sold on 1 July 2012. 
-If the machine was sold for $59 000 on 1 July 2011,what was the gain or loss on disposal?
A) loss of $21 000
B) loss of $59 000
C) loss of $61 000
D) loss of $13 000.

Use the Information Below to Answer the Following Questions