Question 1 of 30
A manufacturing company has recently acquired a new piece of machinery for $150,000. The machinery has an estimated useful life of 10 years and a salvage value of $15,000. The company uses the straight-line method for depreciation. After 3 years of use, the company decides to sell the machinery for $100,000. What is the gain or loss on the sale of the machinery?
Gain of $15,000
Loss of $5,000
Gain of $5,000
Loss of $15,000

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