Leesburg sold a machine for $2,200 on november 10th 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?

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Candice

Business

20 May, 20:57

Leesburg sold a machine for $2,200 on november 10th 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?

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Chan · Answer 1

The original price of the machine is $2,600 but it has a depreciation value now of $1,200.

*original price - depreciation value = machine's existing value*

$2,600 - $1,200 = $1,400

However, they've sold the machine for $2,200 instead of 1,400 (which is supposedly the existing price). So, they've gain $800 ($2,200 deducted by $1,400) out from this transaction.