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Question - Peach Ltd purchased a machine for $20,000 on 1 January 2016. Peach depreciated it using straight-line depreciation, assuming that it would have a useful life of three years and $5,000 salvage value. However, on 31 December 2017 the machine was sold for $8,000 cash. What was the gain or loss on sale?
a) $8,000 gain
b) 3,000 gain
c) $10,000 loss
d) $2,000 loss
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