Multiple Choice
Ben bought an ice cream machine 2 years ago for $8,000. The depreciation life for ice cream machines is 4 years. Ben uses straight line depreciation and a convention of taking one-half year's depreciation in the first year. Ben just sold his machine to Jerry for $6,000. What will be Ben's Capital Gain/(Loss) on this transaction?
A) $1,000
B) $2,000
C) $5,000
D) ($2,000)
Correct Answer:
Verified
Correct Answer:
Verified
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