Silverline Manufacturing purchased equipment several years ago for $90,000 to use in its business. This year, it sold the equipment for $95,000. The accumulated MACRS depreciation through the date of sale was $25,000. Determine the amount of Section 1231 gain recognized by Silverline Manufacturing.

Silverline Manufacturing purchased equipment several years ago for $90,000 to use in its business. This year, it sold the equipment for $95,000. The accumulated MACRS depreciation through the date of sale was $25,000. Determine the amount of Section 1231 gain recognized by Silverline Manufacturing.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9RE

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Question

Determine the amount of section 1231 gain recognized by silverline manufacturing on these general accounting question

Silverline Manufacturing purchased equipment several years ago
for $90,000 to use in its business. This year, it sold the equipment
for $95,000. The accumulated MACRS depreciation through the
date of sale was $25,000.
Determine the amount of Section 1231 gain recognized by Silverline
Manufacturing.

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