Farley Mills Purchased New Machinery at the Beginning of 2019

Essay

Farley Mills purchased new machinery at the beginning of 2019 for $200,000. The machines had an estimated life of 5 years, an estimated residual value of $25,000, and were depreciated using the straight-line method. At the beginning of 2020, the machines were sold for $150,000 because management was unhappy with their performance.
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Determine the following amounts:
A)Book value of the machinery at the end of 2019.
B)Gain (loss) on the disposal of the machinery at the beginning of 2020 (Indicate the amount and whether a gain or loss).