Question: SMTTP Engineering Corp ordered a $40,000 machine and installed it for $10,000. The asset was just sold 3 years later at a 40% discount($30,000). What

SMTTP Engineering Corp ordered a $40,000 machine and installed it for $10,000. The asset was just sold 3 years later at a 40% discount($30,000). What is the capital gains or loss after disposal using the 7-year MACRS depreciation.

A- Gains, $3763

B- Loss, $3763

C- Loss, $8135

D- Gains, $4373

E- Gains, $8745

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