A company sold equipment for $50,000.Total accumulated depreciation at the time of the sale was $20,000 and a loss of $10,000 was recognized on the sale.What was the original cost of the asset?

Question

Quizplus · Accepted Answer

The original cost of the asset can be calculated by adding the sale price, the loss, and the accumulated depreciation: $50,000 (sale price) + $10,000 (loss) + $20,000 (accumulated depreciation) = $80,000.

A Company Sold Equipment for $50,000