Question: WEC purchased a machine for $300,000 with and additional $10,000 delivery and installation charges. The declared salvage value was $25,000. Early in year 4, the

WEC purchased a machine for $300,000 with and additional $10,000 delivery and installation charges. The declared salvage value was $25,000. Early in year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $150,000. Determine the loss or gain on the sale of the machine. Assume a 7-year MACRS depreciation schedule.

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