Ontario Ltd.purchased a machine on Jan 1,2016 for $750,000.The machine had an estimated useful life of 5 years and an estimated residual value of $50,000.The company uses straight-line depreciation and records monthly depreciation.The machine was sold on December 31,2019 for $200,000.What was the gain/loss on disposal of the machine?
A) $10,000 loss.
B) $10,000 gain.
C) $50,000 loss.
D) $50,000 gain.
Correct Answer:
Verified
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