Question
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records: From the Income
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records:
From the Income Statement
Depreciation expense $ 950
Loss on sale of equipment 3,600
From the Balance Sheet
Beginning equipment 19,100
Ending equipment 11,600
Beginning accumulated depreciation 1,910
Ending accumulated depreciation 1,800
No new equipment was bought during the period.
Required: 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)
Cost of equipment sold:
Accumulated depreciation on sold equipment:
Cash received from sale:
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