Question: The Balance Sheet for Desert, Co. dated December 31, 2019, has a wine bottling machine for its vineyard division with a book value of $610,000.

The Balance Sheet for Desert, Co. dated December 31, 2019, has a wine bottling machine for its vineyard division with a book value of $610,000. Desert uses the straight-line method for depreciation and has recorded depreciation at $24,000 per year. On April 1, 2020, the machine is completely destroyed by an earthquake. Fortunately, the insurance company responded with an immediate settlement in the amount of $600,000 W What is the amount of loss Desert would record on its 2020 Income Statement for the involuntary disposal of this machine

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