A purchased machine cost $320,000 with delivery and installation charges amounting to $30,000. The declared salvage value was $50,000. Early in year 3, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to purchase the machine for $180,000. Determine the loss, gain, or recapture for MACRS depreciation on the sale. The MACRS property class for the machine is 7 years

Answer rating: 100% (QA)

To determine the loss gain or recapture for MACRS depreciation on the sale of the machine we need to ... View the full answer