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 as follows:
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.
E) None of the above.