Leesburg sold a machine for $2,200 on November 10ᵗʰ of the current year. The machine was purchased for $2,600. Leesburg had taken $1,200 of depreciation deductions on the machine through the date of the sale. What is Leesburg's gain or loss realized on the machine?
A) $800 gain.
B) $1,000 gain.
C) $1,200 loss.
D) $1,400 loss.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The gain realized is the $2,200 amount realized less the $1,400 ($2,600 - $1,200) adjusted basis.

Leesburg Sold a Machine for $2,200 on November 10ᵗʰ of the Current