Equipment costing $400,000 with accumulated depreciation of $260,000 is sold at a gain of $10,000.This implies that $150,000 cash was received from the sale.

Name: Equipment costing $400,000 with accumulated depreciation of $260,000 is sold at a gain of $10,000.This implies that $150,000 cash was received from the sale.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The book value of the equipment is $140,000 ($400,000 - $260,000). Selling it at a gain of $10,000 means it was sold for $150,000 ($140,000 + $10,000).

Equipment Costing $400,000 with Accumulated Depreciation of $260,000 Is Sold