Powell's Courier Service recorded a loss of $3,000 when it sold a van that originally cost $28,000 for $5,000. Accumulated depreciation on the van must have been

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The loss on sale is calculated as the original cost minus accumulated depreciation minus the sale price. Here, $28,000 - Accumulated Depreciation - $5,000 = -$3,000. Solving for accumulated depreciation gives $20,000.

Powell's Courier Service Recorded a Loss of $3,000 When It