ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P3,000. Upon executing the sale, ABC received P5,000 down payment and a 10% 1 year promissory note for the balance. Compute the amount of loss ABC has suffered from the sale of the equipment.

ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P3,000. Upon executing the sale, ABC received P5,000 down payment and a 10% 1 year promissory note for the balance. Compute the amount of loss ABC has suffered from the sale of the equipment.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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