XYZ Unlimited purchased a machine for $63,000 on July 1, yea…
XYZ Unlimited purchased a machine for $63,000 on July 1, year 1. The machine had an estimated life of 6 years; estimated residual value of $3,000. XYZ sold the machine on December 31, year 4 for a sales price of $25,000. What was the gain or loss on the sale of the machine? XYZ uses the calendar year as its fiscal year and straight-line depreciation.