The following information was drawn from Empire's Year 2 and Year 1 year-end balance sheets. $\begin{array}{lrr}
&\text { Year } 2&\text { Year } 1\
\text { Investment Securities } &\$105,000&\$112,500\
\end{array}$
Empire incurred a $1,500 loss on the sale of investment securities during Year 2.No investment securities were purchased during Year 2.Based on this information alone,what is the amount of cash that was collected from the sale of securities?
A) $7,500
B) $6,000
C) $9,000
D) $1,500

Question

The following information was drawn from Empire's Year 2 and Year 1 year-end balance sheets. $\begin{array}{lrr}
&\text { Year } 2&\text { Year } 1\
 \text { Investment Securities } &\$105,000&\$112,500\
\end{array}$
 Empire incurred a $1,500 loss on the sale of investment securities during Year 2.No investment securities were purchased during Year 2.Based on this information alone,what is the amount of cash that was collected from the sale of securities?
A) $7,500
B) $6,000
C) $9,000
D) $1,500

Quizplus · Accepted Answer

The decrease in investment securities from Year 1 to Year 2 is $7,500 ($112,500 - $105,000). Since there was a $1,500 loss, the cash collected from the sale is $6,000 ($7,500 decrease - $1,500 loss).

The Following Information Was Drawn from Empire's Year 2 and Year