On December 31, Sawyer Corporation decided to sell one of its manufacturing machines. The initial cost of the equipment was $425,000 with accumulated depreciation of $285,000. Depreciation has been taken up to the end of the year. The company found a buyer willing to purchase the equipment for $95,000. What is the amount of the gain or loss on this transaction?
On December 31, Sawyer Corporation decided to sell one of its manufacturing machines. The initial cost of the equipment was $425,000 with accumulated depreciation of $285,000. Depreciation has been taken up to the end of the year. The company found a buyer willing to purchase the equipment for $95,000. What is the amount of the gain or loss on this transaction?
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 32CE
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Transcribed Image Text:On December 31, Sawyer Corporation decided
to sell one of its manufacturing machines. The
initial cost of the equipment was $425,000 with
accumulated depreciation of $285,000.
Depreciation has been taken up to the end of
the year. The company found a buyer willing to
purchase the equipment for $95,000. What is
the amount of the gain or loss on this
transaction?
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