Mercury Company reports depreciation expense of $40,000 for Year 2.Also,equipment costing $150,000 was sold for its book value in Year 2.There were no other equipment purchases or sales during the year.The following selected information is available for Mercury Company from its comparative balance sheet.Compute the cash received from the sale of the equipment.
$$\begin{array} { | l | r | r | }
\hline \text { At December 31 } & \text { Year 2 } & \text { Year 1 } \
\hline \text { Equipment } & \$ 600,000 & \$ 750,000 \
\hline \text { Accumulated Depreciation-Equipment } & 428,000 & 500,000 \
\hline
\end{array}$$

Question

Mercury Company reports depreciation expense of $40,000 for Year 2.Also,equipment costing $150,000 was sold for its book value in Year 2.There were no other equipment purchases or sales during the year.The following selected information is available for Mercury Company from its comparative balance sheet.Compute the cash received from the sale of the equipment.
$$\begin{array} { | l | r | r | } 
\hline \text { At December 31 } & \text { Year 2 } & \text { Year 1 } \
\hline \text { Equipment } & \$ 600,000 & \$ 750,000 \
\hline \text { Accumulated Depreciation-Equipment } & 428,000 & 500,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Mercury Company reports depreciation expense of $40,000 for Year 2.Also,equipment costing $150,000 was sold for its book value in Year 2.There were no other equipment purchases or sales during the year.The following selected information is available for Mercury Company from its comparative balance sheet.Compute the cash received from the sale of the equipment.
$$\begin{array} { | l | r | r | } 
\hline \text { At December 31 } & \text { Year 2 } & \text { Year 1 } \
\hline \text { Equipment } & \$ 600,000 & \$ 750,000 \
\hline \text { Accumulated Depreciation-Equipment } & 428,000 & 500,000 \
\hline
\end{array}$$

Mercury Company Reports Depreciation Expense of $40,000 for Year 2