Concept introduction:
Requirement 1:
To determine:
We have to determine the straight line of depreciation of new machine.
Requirement 2:
To determine:
We have to determine the expected net income and net
Requirement 3:
To determine:
We have to determine the payback period.
Requirement 4:
To determine:
We have to determine the machine accounting
Requirement 5:
To determine:
We have to determine the
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Fundamental Accounting Principles
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- During the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) ordinary income of $120,000. B) Sec. 1231 gain of $120,000. C) ordinary income of $90,000 and LTCL of $30,000. D) ordinary income of $85,000 and Sec. 1231 gain of $150,000. Solvearrow_forwardSolution with steps of the financial accounting Problemarrow_forwardDo fast answer of this general accounting questionarrow_forward
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