Answered
A firm had a piece of machinery that cost $7,000 when new and has accumulated $4,500 in depreciation. If the machine is sold for $4,000, which of the following is true?
A) The firm has a taxable gain of $4,000 on the sale of the machine
B) The firm has a taxable gain of $1,500 on the sale of the machine
C) The firm has a deductible loss of $3,000 on the sale of the machine
D) The firm has a taxable gain of $7,000 on the sale of the machine
On May 26, 2024