Powell's Courier Service recorded a loss of $9000 when it sold a van that originally cost $84000 for $15000. Accumulated depreciation on the van must have been
A) $78000.
B) $24000.
C) $75000.
D) $60000.

Question

Quizplus · Accepted Answer

The loss on sale is calculated as the original cost minus accumulated depreciation minus the sale price. Here, $84000 - Accumulated Depreciation - $15000 = -$9000. Solving for Accumulated Depreciation gives $60000.

Powell's Courier Service Recorded a Loss of $9000 When It