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 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 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 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