The Stevie Ray Vaughan company has been straight-line depreciating a CNC router it bought for $500,000 with a depreciable life of eight years and assuming it would get a salvage value of $20,000.
After three years, the router was sold for 60% of its original purchase price.
From a tax perspective, state below whether this sale represents a type of recaptured depreciation, loss, or capital gain. Also state below how much, to the closest dollar, is the recaptured depreciation, loss, or capital gain.