Equipment costing $20,000 that is a MACRS 3-year property is disposed of during the second year for

Question:

Equipment costing $20,000 that is a MACRS 3-year property is disposed of during the second year for $14,000. Calculate any depreciation recapture, ordinary losses, or capital gains associated with disposal of the equipment.

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing...