Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the machine was used are as follows:
$\begin{array}{rrr}&\text { Cost Recovery Allowed }&\text { Cost Recovery Allowable }\
\text { Year 1 } & \$ 16,000 & \$ 8,000 \
\text { Year 2 } & 9,600 & 12,800 \
\text { Year 3 } & 5,760 & 7,680
\end{array}$
If Tara sells the machine after three years for $15,000, how much gain should she recognize?

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The Answer of Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the machine was used are as follows:
$\begin{array}{rrr}&\text { Cost Recovery Allowed }&\text { Cost Recovery Allowable }\
\text { Year 1 } & \$ 16,000 & \$ 8,000 \
\text { Year 2 } & 9,600 & 12,800 \
\text { Year 3 } & 5,760 & 7,680
\end{array}$
If Tara sells the machine after three years for $15,000, how much gain should she recognize?

Tara Purchased a Machine for $40,000 to Be Used in Her