A company has the following information related to its fixed assets for the year ended December 31, 2022:

• Cost of a new machine purchased on January 1, 2022: $100,000
• Accumulated depreciation, January 1, 2022: $50,000
• Depreciation expense for the year ended December 31, 2022: $20,000
• Sale of old machine (original cost $30,000 and accumulated depreciation of $25,000) on November 1, 2022: $5,000

Required:

(a) Calculate the book value of the company's fixed assets at December 31, 2022. (5 marks)

(b) Calculate the net gain or loss from the sale of the old machine. (5 marks)