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Goodson Company purchased machinery for $640,000 on January 1, 2016. Straight-line depreciation has been recorded based on a $40,000 salvage value and a 5-year useful
Goodson Company purchased machinery for $640,000 on January 1, 2016. Straight-line depreciation has been recorded based on a $40,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2020 at a gain of $12,000. How much cash did Goodson receive from the sale of the machinery?
a.
$108,000.
b.
$92,000.
c.
$132,000.
d.
$172,000.
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