who are you 6
October 9, 2021
discussion reply paraphrasing 1
October 9, 2021

Orton Corporation, which has a calendar year accounting period, purchased a new machine for $40,000 on April 1, 2006. At that time Orton expected to use the machine for nine years and then sell it for $4,000. The machine was sold for $22,000 on Sept. 30, 2011. Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be
 
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