On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022?

On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022? I want help
On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022? help
How much would be recorded as a gain on disposal?
Would be recorded as a gain on disposable of the machine on January??
Please given correct answer
Hi expert please help me
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