Whitewater Company purchased a piece of new machinery to use in its business. The details of the purchase and related costs are as follows:

Purchase price of machinery $180,000

Sales tax of machinery $12,000

Installation of machinery $5,000

Salvage value $10,000

Annual salary of new employee hired to operate machinery $50,000

Increase in annual cost of fire and theft insurance to cover

New machinery $6,000

Estimated useful life of machinery 10 years

(3 points) Question 3 Assume that Whitewater sells the machinery at the end of year 4 for $125,000. What is the gain or loss Whitewater would recognize on the sale of the machinery?