Ontario Ltd. purchased a machine on Jan 1, 2010 for $750,000. The machine had an estimated useful life of 5 years and an estimated residual value of $50,000. The company uses straight-line depreciation and records monthly depreciation. The machine was sold on December 31, 2013 for $200,000. What was the gain/loss on disposal of the machine?

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The gain on disposal of the machine is $10,000. The machine was purchased for $750,000 and depreciated over 5 years to a residual value of $50,000. The machine was sold for $200,000, which is $10,000 more than the book value of $190,000.