Blair Inc. bought a $1,000,000 machine on January 1, 2004. Blair estimated that the machine would have a salvage value of $100,000 at the end of its 20 year useful life. Blair uses the straight-line method of depreciation. Blair sold the machine to New York Inc. on October 31, 2010 for $700,000 cash. How much depreciation expense should Blair recognize in 2010, and what gain or loss should Blair recognize from the sale of the plane to New York Inc.?

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The Answer of Blair Inc. bought a $1,000,000 machine on January 1, 2004. Blair estimated that the machine would have a salvage value of $100,000 at the end of its 20 year useful life. Blair uses the straight-line method of depreciation. Blair sold the machine to New York Inc. on October 31, 2010 for $700,000 cash. How much depreciation expense should Blair recognize in 2010, and what gain or loss should Blair recognize from the sale of the plane to New York Inc.?

Blair Inc Bought a $1,000,000 Machine on January 1, 2004