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On January 1, 2019, HBW, Inc. purchased three machines for $400,000. The following information is available concerning the machines that were purchased: Market Value Machine
On January 1, 2019, HBW, Inc. purchased three machines for $400,000. The following information is available concerning the machines that were purchased: Market Value Machine A ................ $105,000 Machine B ................ $189,000 Machine C ................ $126,000 Before the property could be used, HBW, Inc. had to spend $7,000 on Machine A, $11,000 on Machine B, and $20,000 on Machine C to get the assets into working order. Assume Machine B was assigned a $23,000 residual value, a twenty year life, and was being depreciated using the straight-line depreciation method. On June 1, 2028 Machine B was sold for $37,400. Calculate the amount of the loss recorded on the sale of Machine B. Do not put a minus sign in front of your answer when entering it into carmen.
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