Moped, Inc. purchased machinery at a cost of $22,000 on January 1, 2014. The expected useful life is 5 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets using the double-declining balance method. What is the firm's gain or loss if the machinery is sold for $11,000 on December 31, 2015?
A) Gain of $4,000
B) Gain of $3,080
C) Loss of $600
D) Loss of $4,000
Correct Answer:
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