During 2017, Jersey Ltd.sold equipment that had originally cost $206,000 for $127,600.This resulted in a gain of $9,600.The balance in the Accumulated Depreciation-Equipment was $660,000 on January 1, 2017, and $630,000 on December 31, 2017.No other equipment was disposed of during 2017.Depreciation expense for 2017 was

Question

Quizplus · Accepted Answer

The gain on the sale of equipment is calculated as follows:
Sale price - Book value = Gain
$127,600 - ($206,000 - $660,000 + Depreciation Expense) = $9,600
Simplifying this equation, we get:
Depreciation Expense = $58,000
The depreciation expense for 2017 is therefore $58,000.