Bird Corporation purchases machinery for $3 million and places it in service in June 2017. Installation costs

Question:

Bird Corporation purchases machinery for $3 million and places it in service in June 2017. Installation costs are $75,000. The machine replaces an old machine that Bird purchased several years ago, which Bird sells at a $125,000 financial accounting profit. What issues must you, as Bird’s director of taxes, address because of the sale of the old machine and purchase of the new machine?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...