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Tara purchased a machine for $40,000 to be used in her business.The cost recovery allowed and allowable for the three years the machine was used are computed as follows.
Cost Recovery Allowed
Cost Recovery Allowable
Year 1
$16,000
$ 8,000
Year 2
9,600
12,800
Year 3
5,760
7,680
If Tara sells the machine after three years for $15,000,how much gain should she recognize?
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Government funding refers to financial support provided by a government for projects, services, or to assist sectors of the economy.
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