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a. What is the book value of the machine on the date of sale? b. What is the cash flow amount resulting from the sale?

a. What is the book value of the machine on the date of sale?

b. What is the cash flow amount resulting from the sale?

Lockspot Inc. purchased a machine for $125,000 on January 1, 2008. The estimated useful life was 10 years and the salvage value was $5,000. On January 1, 2016, Lockspot sells the machine, reporting a gain of $3,000.

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