Determine the loss gain or recapture of MACRS depreciation

Reference no: EM132165540

Question - A purchased machine cost $245,000, with delivery and installation charges amounting to $15,000. The declared salvage value was $20,000. Early in Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture of MACRS depreciation on the sale. The ADR is 12 years for this machine.

Reference no: EM132165540

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