A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available. What will be the gain (or loss) on this transaction?
A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available. What will be the gain (or loss) on this transaction?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1b. A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no
longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available.
What will be the gain (or loss) on this transaction?
Edit
Format
Table](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b0a5411-bdb0-4804-8919-e2df25fb5bff%2Ff73937c2-df3c-4a08-a0e1-2f7286ae0ae1%2Fvg4s3cm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1b. A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no
longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available.
What will be the gain (or loss) on this transaction?
Edit
Format
Table
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