If machinery that cost $8,000 when new, has accumulated depreciation of $4,500, and is sold for $4,000, the gain recognized on the sale would be $4,000.

Name: If machinery that cost $8,000 when new, has accumulated depreciation of $4,500, and is sold for $4,000, the gain recognized on the sale would be $4,000.
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Quizplus · Accepted Answer

The gain recognized on the sale would actually be zero. The machinery is being sold for less than its current book value, meaning there is actually a loss on the sale rather than a gain.

If Machinery That Cost $8,000 When New, Has Accumulated Depreciation