If a loss of $20,000 is incurred in selling (for cash) office equipment that cost $90,000 and had accumulated depreciation of $22,500, then the actual cash proceeds must have been

Name: If a loss of $20,000 is incurred in selling (for cash) office equipment that cost $90,000 and had accumulated depreciation of $22,500, then the actual cash proceeds must have been
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Question

Quizplus · Accepted Answer

The book value of the equipment is $90,000 - $22,500 = $67,500. A loss of $20,000 means the cash proceeds were $67,500 - $20,000 = $47,500.

If a Loss of $20,000 Is Incurred in Selling (For