Leesburg sold a machine for $2,200 on November 10^th of the current year. The machine was purchased for $2,600. Leesburg had taken $1,200 of depreciation deductions on the machine through the date of the sale. What is Leesburg's gain or loss realized on the machine?

Question

Quizplus · Accepted Answer

Leesburg's gain or loss is calculated as the selling price minus the adjusted basis (purchase price minus depreciation). The adjusted basis is $2,600 - $1,200 = $1,400. The gain is $2,200 - $1,400 = $800.

Leesburg Sold a Machine for $2,200 on November 10th of the Current

Leesburg Sold a Machine for $2,200 on November 10^th of the Current