Question
Mercury Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. The following
Mercury Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. The following selected information is available for Mercury Company from its comparative balance sheet.
Compute the cash received from the sale of the equipment.
| At December 31 | Year 2 | Year 1 |
| Equipment | $610,000 | $750,000 |
| Accumulated Depreciation-Equipment | 428,000 | 500,000 |
A. $32,000.
B. $40,000.
C. $36,000.
D. $68,000.
E. $38,000.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
