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?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

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