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SMTTP Engineering Corp ordered a $40,000 machine and installed it for $10,000. The asset was just sold 3 years later at a 40% discount($30,000). What
SMTTP Engineering Corp ordered a $40,000 machine and installed it for $10,000. The asset was just sold 3 years later at a 40% discount($30,000). What is the capital gains or loss after disposal using the 7-year MACRS depreciation.
A- Gains, $3763 |
B- Loss, $3763 |
C- Loss, $8135 |
D- Gains, $4373 |
E- Gains, $8745
Show your method, approach, calculations to the best of your ability |
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