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7 November, 06:08

Sunshine LLC sold furniture for $75,650. Sunshine bought the furniture for $89,870 several years ago and has claimed $24,935 of depreciation expense on the machine. What is the amount and character of Sunshine's gain or loss

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Answers (1)
  1. 7 November, 09:03
    0
    The gain is $10,715

    Explanation:

    Solution

    Given that:

    The cost of furniture = $89,870

    Accumulation of depreciation = $24,935

    Thus

    The book value of furniture = $89,870 - $24,935

    =$64,935

    The sale value of the furniture = $75,650

    Now,'

    The gain on sale of the furniture is given below:

    Gain on sale of furniture = sale price - book value

    = $75,650 - $64,935

    =$10,715

    The gain is The long term capital gain on sale of furniture is $10,715
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Home » Business » Sunshine LLC sold furniture for $75,650. Sunshine bought the furniture for $89,870 several years ago and has claimed $24,935 of depreciation expense on the machine. What is the amount and character of Sunshine's gain or loss
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