Melody Corporation purchased a machine for $400,000. This machine has a useful life of 10 years...

Melody Corporation purchased a machine for $400,000. This machine has a useful life of 10 years and an estimated salvage of $20,000. Depreciation was recorded on a straight-line basis for 7 years. After recording depreciation expense in the 7^th year, Melody sold the machine for $100,000.

(a) What is the carrying value of the machine at the point of sale? (10 pts)

(b) How much gain or loss should Melody report on the sale? (6 pts). Clearly identify if the amount is a gain or a loss. (4 pts)

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ekkarill92 answered 1 year ago

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