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?
Depreciation per month=(550000-25000)/120=$4375
Period for which machine is ...
Solution describes the steps to calculate the recognized capital gain from the sale of the machine.