Ask Question
25 January, 12:25

Joan bought a business machine for $15,000 on January 1, 2013, and later sold the machine for $12,800 when the total allowable depreciation is $8,500. The depreciation actually taken on the tax returns totaled $8,000. Joan must recognize a gain or loss ofA. no gain or lossB. $6,800C. ($3,200) D. $6,300

+2
Answers (1)
  1. 25 January, 15:39
    0
    The correct answer is option D.

    Explanation:

    Joan bought a business machine for $15,000.

    She sold it for $12,800.

    The total allowable depreciation is $8,500.

    The depreciation actually taken on the tax returns totaled $8,000.

    The book value of machine

    = Original value - Allowable depreciation

    = $15,000 - $8,500

    = $6,500

    Gain to Joan

    = Selling price of machine - Book value of machine

    = $12,800 - $6,500

    = $6,300
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Joan bought a business machine for $15,000 on January 1, 2013, and later sold the machine for $12,800 when the total allowable depreciation ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers