Leesburg sold a machine for $2,200 on November 10 ^th 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

Leesburg's gain is calculated as the selling price ($2,200) minus the adjusted basis (purchase price $2,600 - depreciation $1,200 = $1,400), resulting in an $800 gain.

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

Leesburg Sold a Machine for $2,200 on November 10 ^th