Problem:
Mason Company purchased a new machine on January 1, 1999, for $64,000. At the time of acquisition,the machine was estimated to have a service life of eight years and a salvage value of $10,000.The company uses the double-declining balance method of calculating depreciation. Assume that themachine was sold for $39,000 cash on December 31, 2001.
Required:
Question: Calculate the gain recorded on the sale.
Note: Please show how you came up with the solution.