Blanket Corporation sold equipment for cash of $40,500.Accumulated depreciation on the sale date amounted to $34,000 and a loss of $1,800 was recognized on the sale. What was the original cost of the asset?

Question

Quizplus · Accepted Answer

Original cost of asset = cash received from sale + accumulated depreciation + loss recognized 
Original cost of asset = $40,500 + $34,000 + $1,800 
Original cost of asset = $76,300

Blanket Corporation Sold Equipment for Cash of $40,500