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A company pays R400 000 to replace a major component of a factory machine. The f...
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A company pays R400 000 to replace a major component of a factory machine. The faulty component that is replaced is sold for R20 000. The carrying amount of the machine just before this replacement occurs is R4 500 000, of which R100 000 relates to the faulty component that is being replaced. The revised carrying amount of the machine after the replacement occurs and the profit or loss on disposal of the faulty component are:
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