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Q1) Gain or loss on sale. Nikitas Bus Company had machinery that had originally cost $166,192. The machinery and had been depreciated using the straight-line method, over a five-year useful life with a residual value of $11,925. After using and depreciating the machine for three years, the company sold the machinery for $79,074.
What is the gain (loss) recognized when the machine was sold?
Q2) Double-declining-balance depreciation. Parcon Publishing, a textbook publishing firm, purchased a new machine for $41,884. This machine is expected to operate for 10 years, after which it will be sold for salvage value (estimated to be $1,024).How much will the first year's depreciation expense be under the double-declining-balance method? Ignore the dollar sign and round your answer to the integer.
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