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

question 149

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 $50,000 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:

CPM Network

A project management tool that uses critical path method (CPM) to model tasks and activities in a project, showing the sequence and duration of each.

Project Cost

The total expenses incurred in the undertaking of a project including materials, labor, equipment, and overhead costs.

Crash Cost

Crash Cost relates to the increased costs associated with speeding up a project's timeline, beyond the standard pace, to achieve an earlier completion.

Normal Duration

The standard or expected time period something takes to complete under typical circumstances.