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Problem 1: Bowie Company uses a calendar year and the straight line depreciation method. On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine which was originally purchased on January 1, 2015. The historical cost was $23,500, the salvage value assumed was $2,000 and the original estimated life was five years. It was sold for $3,000 cash. Using this information, how much should be recorded on December 31 for the Gain or (Loss)? Round to whole dollars.
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