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?

A)$3,480
B)$6,360
C)$9,240
D)$11,480
E)None of the above

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?

A)$3,480 
B)$6,360 
C)$9,240 
D)$11,480 
E)None of the above

Quizplus · Accepted Answer

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?

A)$3,480 
B)$6,360 
C)$9,240 
D)$11,480 
E)None of the above

Tara Purchased a Machine for $40,000 to Be Used in Her