On April 30, 2019, Smith & Smith sold some used equipment for $28,000. The accumulated depreciation on the equipment when sold was $32,000. Smith & Smith properly recorded a $11,000 gain on the sale.
The original cost of the equipment when it was purchased several years ago must have been:

Question

Quizplus · Accepted Answer

The original cost of the equipment can be calculated by adding the accumulated depreciation and the book value at the time of sale. The book value is the sale price minus the gain. Thus, $28,000 - $11,000 = $17,000 (book value). Adding the accumulated depreciation: $17,000 + $32,000 = $49,000.

On April 30, 2019, Smith & Smith Sold Some Used