Albert Corp

question 143

Multiple Choice

Albert Corp. bought a machine for $10,000 thirteen years ago. It has been depreciated on a straight line basis over a 20 year life with no salvage value. The firm just sold the machine for $6,000. How much gain/loss should be reported on the sale?

• A)$4,000 loss
• B)$2,500 loss
• C)No gain or loss should be recorded.
• D)$2,500 gain
• E)$4,000 gain

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