Homework Answers
ANSWER
cost basis = 320000 + 30000 = 350000
Depreciation in yr 1 = 0.1429 * 350000 = 50015
Depreciation in yr 2 = 0.2449 * 350000 = 85715
Depreciation in yr 3 = 0.1749 * 350000 = 61215
Book value in yr 3 = 350000 - 50015 - 85715 - 61215/2 = 183662.50
Gain/Loss after selling machine = 180000 - 183662.50 = -3662.50
Therefore Loss of 3662.50
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