On January 1, 2019, Philadelphia Instruments sold a depreciable asset for cash of $1,200,000 and recognized a gain of $180,000. The asset had been purchased on January 1, 2014 with an estimated useful life of 10 years, and no salvage value. The asset was depreciated using the straight-line method.
What must have been the original cost of the asset?
A) $1,980,000
B) $2,400,000
C) $2,040,000
D) $2,750,000
Correct Answer:
Verified
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