Gameroom wishes to determine the returns on two of its video machines, Conqueror andDemolition. Conqueror
EXAMPLE 2Robin’s Gameroom wishes to determine the returns on two of its video machines, Conqueror andDemolition. Conqueror was purchased 1 year ago for $20,000 and currently has a market valueof $21,500. During the year, it generated $800 worth of after-tax receipts. Demolition waspurchased 4 years ago; its value in the year just completed declined from $12,000 to $11,800.During the year, it generated $1,700 of after-tax receipts