Solution-How should Dan treat the gain or loss

How should Dan treat the gain or loss

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Reference no: EM132529370

Question - In 2019, Dan Dunne sold a business machine for $75,000. He had purchased the machine in 2015 for $90,000, had depreciated it on the straight-line basis using a life of five years, and had taken a total of $63,000 depreciation.

Required -

a. How should Dan treat the recognized gain or loss on the sale?

b. How should Dan treat the gain or loss if he had used an accelerated depreciation method with a total of $71,100 taken in the four years?

Reference no: EM132529370

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How should Dan treat the gain or loss

Reference no: EM132529370

Reference no: EM132529370

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