Question: Uptown Bakery purchased a grain grinding machine five years ago for $21,000. The machinery was expected to have a salvage value of $1,000 after a

Uptown Bakery purchased a grain grinding machine five years ago for $21,000. The machinery was expected to have a salvage value of $1,000 after a 10-year useful life. Assuming straight-line depreciation is used calculate the gain or loss realized if the machinery was sold after five years for

1. $13,500

2. $8,400

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