Nicklaus company has decided to sell one of its old machines on june 30, 2013. the machine was purchased for $160,000 on january 1, 2009, and was depreciated on a straight-line basis for 10 years with no salvage value. if the machine was sold for $52,000, what was the amount of the gain or loss recorded at the time of the sale?

Straight line depreciation (D) is computed as follows:

D= (purchase cost of an asset- its expected salvage value)/ the number of years of its expected useful life.

In the case of the old machine sold by Nicklaus Company, depreciation (D) in dollars is:

D = (160,000-0)/10

D= 160,000/10

D= 16,000 per year

Since the machine was bought on June 30, 2003, and was sold on January 1, 2009, its total depreciation value (TD) for the 6 and half years that it was used is:

TD = 16,000 x 6.5

TD= 104,000

Cost of the asset on time of sale, therefore, is 160,000-104,000=56,000

Since the company sold it at only $52,000, recorded loss will be $4,000 (56,000-52,000). 

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it

answeri believe this is (true );