XYZ Unlimited purchased a machine for $63,000 on July 1, year 1. The machine had an estimated
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Question:
XYZ Unlimited purchased a machine for $63,000 on July 1, year 1. The machine had an estimated life of 6 years; estimated residual value of $3,000. XYZ sold the machine on December 31, year 4 for a sales price of $25,000. What was the gain or loss on the sale of the machine? XYZ uses the calendar year as its fiscal year and straight-line depreciation.
Group of answer choices
No gain or loss
$3,000 loss
$2,000 loss
$3,000 gain
Related Book For
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans
Posted Date: