1. Company Inc has a machine that cost $150,000. Accumulated depreciation is $120,000. The machine was sold for $25,000. The amount of the gain or loss from this sale is:

a.a loss of $30,000

b. a gain of $30,000

c.a loss of $5,000

d.a gain of $5,000

2. SMJ Corp purchased a machine on1/1/25 for 1,000,000. The estimated life of the machine was 5 years and its estimated residual value was $160,000. SMJ Corp uses straight line depreciation. Calculate the depreciation expense per year using the straight-line depreciation method:

a. 178,000

b. 128,000

c.168,00

d.160,000