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 computed as follows. If Tara sells the machine after three years for $15,000, how much gain should she recognize?

Question

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 computed as follows.   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 computed as follows.   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