Question: Industry Leading Manufacturers purchased equipment five years ago for
Industry Leading Manufacturers purchased equipment five years ago for $78,000. The company expects the equipment to have a salvage value of $3,000 after an eight-year useful life. Assuming the company uses straight-line depreciation; calculate the gain or loss realized if the company sells the equipment after four years for
1. $ 42,050.
2. $ 39,875.
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