Question
Hill Company purchased a machine for $11,000 on January 1, 2016. The machine has been depreciated using the straight-line method over a 5-year life with
Hill Company purchased a machine for $11,000 on January 1, 2016. The machine has been depreciated using the straight-line method over a 5-year life with a $1,400 residual value. Hill sold the machine on January 1, 2018, for $8,400. The book value as of December 31, 2017 is $7,160. What gain or loss should Hill record on the sale?
A.Loss, $ 1 240
B.Gain, $1,200
C.Gain,$1,240
D.Loss, $ 680
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Accounting and Financial Analysis in the Hospitality Industry
Authors: Johnathan Hales
1st edition
132458667, 978-0132458665
