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Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the machine was
Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the machine was used are as follows:
|
| Cost Recovery Allowed | Cost Recovery Allowable |
| Year 1 | $16,000 | $ 8,000 |
| Year 2 | 9,600 | 12,800 |
| Year 3 | 5,760 | 7,680 |
If Tara sells the machine after three years for $15,000, how much gain should she recognize?
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