Answer:
Date of selling machine is 31 Dec 2021, then gain of $47,000
If date of selling this machine is 31 Dec 2012 (used tenor: 4 years), then gain of 2,000
Explanation:
Depreciation per year = (original cost $80,000 - residual value $5,000)/ useful life of 10 years
= $7,500 per year
Date of purchase: January 1, 2009
Date of sold: December 31, 2021
⇒ Actual life of this machine = 13 years, but the maximum depreciation as accounting rule is for 10 year only
After 13 years, the book value = original cost - depreciation booked
= $80,000 - $7,500*10 = $5,000
Gain/ Loss = sold price - boo value = $52,000 - $5,000 = $47,000
If date of selling this machine is 31 Dec 2012 (used tenor: 4 years), then we have:
Gain/ Loss = sold price - book value
= $52,000 - ($80,000 - $7,500*4) = 2,000
