Problem
A purchased machine cost $245,000, with delivery and installation charges amounting to $15,000. The declared salvage value was $20,000. Early in Year 4, the company changed its product mix and found that it no longer neededthe machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture of MACRS depreciation on the sale. The ADR is 12 years for this machine.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.