Question
Sutherland Company purchased machinery for $1,120,000 on January 1, 2015. Straight-line depreciation has been recorded based on a $70,000 salvage value and a 5-year useful
Sutherland Company purchased machinery for $1,120,000 on January 1, 2015. Straight-line depreciation has been recorded based on a $70,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2019 at a gain of $21,000. How much cash did Sutherland receive from the sale of the machinery?
a.$161,000.
b.$189,000.
c.$231,000.
d.$301,000.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
