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Denver Corporation sells the following equipment and warehouse on June 3, 2016: Item Cost Date Acquired Depreciation Selling Price Equipment 90,000 2012 60,000 40,000 Machine
Denver Corporation sells the following equipment and warehouse on June 3, 2016:
Item | Cost | Date Acquired | Depreciation | Selling Price |
Equipment | 90,000 | 2012 | 60,000 | 40,000 |
Machine | 120,000 | 2013 | 10,000 | 145,000 |
Warehouse | 600,000 | 2014 | 65,000 | 640,000 |
a. What is the gain or loss for each asset? Be sure to identify the character.
b. What is the total of each type of gain or loss? How will these affect Denver Corporations net income?
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