Royal Plastics provides the following information about its moulding machinery. Opening balance of machinery account $500,000; Closing balance of machinery account $650,000; Depreciation expense for the year $50,000; Depreciation charged on machinery sold $130,000; Profit on sale of machinery $20,000; Carrying value of machinery sold $90,000. How much cash was received from the disposal of machinery?

Question 10Answer

a.

$100,000.

b.

$20,000.

c.

$110,000.

d.

$90,000.