The Paper company purchased a machine on December 2, 2019, at an invoice price of $45,000

with terms 2/10, n30. On December 3, 2019, they paid $800 for delivery of the machine. On

December 10, 2019, they paid the required amount for the machine. On January 21, 2020,

$3,000 was paid for the final installation and testing of the machine. The machine was ready for

use on February 1, 2020. It was estimated that the machine would have a useful life of 5 years, and a residual value of $8,000. Engineering studies indicated that the useful life in productive units was 200,000. The

machine produced 30,000 units in 2020 and 48,000 units in 2021. The company has a

December 31st year end.

** For this part assume Paper has used the straight-line method of amortization since

purchase. On December 31, 2018 a machine was purchased for $50,000. It was put into use on

March 2, 2019 and it was estimated that the machine would have a useful life of 5 years, and a

residual value of $8,000. On January 1, 2021, a computerized control panel worth $5,000 was

added to the machine. Engineers estimate that this will extend the life of the machine by two

years. On February 28, 2022 the machine was sold for $15,000. Calculate the net book value of

the machine as at December 31,2021 and any gain or loss on the sale of the machine in 2022.