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On January 1, a Company Sold a Machine for $5,000

Question 12

Multiple Choice

On January 1, a company sold a machine for $5,000 that it had used for several years. The machine cost $11,000, and had accumulated depreciation of $4,500 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine for the year ended December 31?


A) gain of $5,000
B) loss of $6,500
C) loss of $1,500
D) gain of $1,500

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