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Fred Inc owns machinery that cost $4,000 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $480 per year, resulting

Fred Inc owns machinery that cost $4,000 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $480 per year, resulting in a balance in accumulated depreciation of $1,680 at December 31, 2020. The machinery is sold on September 1, 2021, for $1,040. What amount of gain (loss) must Fred Inc record from the transaction?

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