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    Calculating the recognized gain in the given case

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    On April 1, 2004, Norcross Corporation purchased a new machine for $550,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $25,000. The company has recorded monthly depreciation using the straight-line method. On August 1, 2013, the machine was sold for $65,000. What gain should be recognized from the sale of the machine?

    a. $36,667
    b. $28,333
    c. $5,000
    d. $4,375

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    https://brainmass.com/business/accounting/calculating-the-recognized-gain-in-the-given-case-498806

    Solution Preview

    Depreciation per month=(550000-25000)/120=$4375

    Period for which machine is ...

    Solution Summary

    Solution describes the steps to calculate the recognized capital gain from the sale of the machine.

    $2.19

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