Equipment with a cost of $22,000 and accumulated depreciation of $15,000 was sold at a gain of $1,000. The cash received from the disposition of equipment is:

Question

Quizplus · Accepted Answer

The book value of the equipment is:
Cost - Accumulated Depreciation = $22,000 - $15,000 = $7,000

Since the equipment was sold at a gain of $1,000, the selling price must have been:
Book Value + Gain = $7,000 + $1,000 = $8,000

Therefore, the cash received from the disposition of equipment is $8,000.

Equipment with a Cost of $22,000 and Accumulated Depreciation of $15,000