Accumulated depreciation on the machine
A company sold a machine that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the machine was $40,000. The company should recognize a:
A) $0 gain or loss
B) $20,000 gain
C) $20,000 loss
D) $40,000 loss
E) $60,000 gain
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The Weber Company purchased a mining site for $500,000 on July 1, 2007. The company expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered.
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What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
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