What is the amount of the gain or loss on the transaction

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On July 4, 2018, Wym Inc. purchased the mineral rights to a granite deposit for $1,600,000. It is estimated that the recoverable granite will be 400,000 tons. During 2018, 100,000 tons of granite was extracted. The amount of depletion recognized for 2018 would be

Question 1: What is the cost basis (the amount recorded in the buyer's accounting records) for the purchase of a used machine with a purchase price of $70,000 that requires an overhaul costing $8,000, installation costs of $4,500, and sales tax of $3,000?

Question 2: On December 31st, Gil Company has decided to sell one of its machines. The initial cost of the equipment was $225,000 with an accumulated depreciation of $175,000. Depreciation has been taken up to the end of the year. Gil Company found a company that is willing to buy the equipment for $18,000. What is the amount of the gain or loss on this transaction? (and please be sure to write the word "gain" or "loss" after your dollar answer, or you won't earn any points)

Reference no: EM132497968

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