Question - Denver Corporation sells the following equipment and warehouse on June 3, 2016:
Equipment: Cost $90,000, date acquired 2012, depreciation $60,000, and selling price $40,000
Machine: Cost $120,000, date acquired 2013, depreciatipon $10,000, and selling price$145,000
Warehouse: Cost $600,000, date acquired 2014, depreciation $65,000 and selling price $640,000
1. What is the gain or loss for each asset? Be sure to identify the character.
2. What is the total of each type of gain or loss? How will these affect Denver Corporation's net income?