A Machine Was Purchased for $100,000 in 2011 and Used

question 139

Essay

A machine was purchased for $100,000 in 2011 and used for four years,during which $60,000 of depreciation accumulated.The machine was then sold for $60,000 cash.What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.

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Definitions:

Technological Knowledge

Understanding and information related to the use, development, and application of technology.

Productivity

A measure of the efficiency of production, often calculated as the ratio of output to inputs used in the production process.

Goods and Services

The output produced by economic systems, where goods are physical items and services are intangible activities provided to consumers.

Human Capital

The capabilities, understanding, and expertise that an individual or group holds, considered in relation to their worth or expense to a company or nation.