Tara Purchased a Machine for $40,000 to Be Used in Her

Multiple Choice

Tara purchased a machine for $40,000 to be used in her business.The cost recovery allowed and allowable for the three years the machine was used are computed as follows. $$\begin{array} { l c c } & \begin{array} { c } \text { Cost Recovery Allow ed Cost } \\\text { Recovery Allow able }\end{array} \\\text { Year 1 } & \$ 16,000 & \$ 8,000 \\\text { Year 2 } & 9,600 & 12,800 \\\text { Year 3 } & 5,760 & 7,680\end{array}$$ If Tara sells the machine after three years for $15,000, how much gain should she recognize?

A) $3,480
B) $6,360
C) $9,240
D) $11,480