Powell's Courier Service recorded a loss of $6,000 when it sold a machine that originally cost $56,000 for $10,000. Accumulated depreciation on the machine must have been

Question

Quizplus · Accepted Answer

The loss on sale is calculated as the original cost minus accumulated depreciation minus the sale price. Here, $56,000 - Accumulated Depreciation - $10,000 = -$6,000. Solving for accumulated depreciation gives $40,000.

Powell's Courier Service Recorded a Loss of $6,000 When It