Joan bought a business machine for $15,000 on January 1,2012,and later sold the machine for $12,800 when the total allowable depreciation is $8,500.The depreciation actually taken on the tax returns totaled $8,000.Joan must recognize a gain (or loss)of

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The gain or loss on the sale of a business machine is calculated as the difference between the selling price and the adjusted basis. The adjusted basis is the original cost of the machine minus the total allowable depreciation. In this case, the original cost is $15,000, the total allowable depreciation is $8,500, and the selling price is $12,800. Therefore, the adjusted basis is $15,000 - $8,500 = $6,500. The gain on the sale is $12,800 - $6,500 = $6,300.

Joan Bought a Business Machine for $15,000 on January 1,2012,and