A machine is purchased on May 10, for $45,000. It has an expected useful life of nine

Question:

A machine is purchased on May 10, for $45,000. It has an expected useful life of nine years and no salvage value. After seven years, the machine is sold for $10,000 cash. What is the gain or loss on the sale?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...