Sayville Dairy sold a delivery truck for cash of $8,680. The original cost of the truck was $33,600, and a loss of $5,320 was recognized on the sale. The accumulated depreciation at the date of sale must have been:

Question

Quizplus · Accepted Answer

To calculate the accumulated depreciation, we can use the following formula:
Accumulated Depreciation = Original Cost - Book Value

Book Value = Original Cost - Accumulated Depreciation

We know that the selling price is $8,680, and a loss of $5,320 was recognized on the sale, which means that the book value of the truck at the time of the sale was $8,680 + $5,320 = $14,000.

Therefore, Accumulated Depreciation = $33,600 - $14,000 = $19,600.

Therefore, the correct answer is D) $19,600.

Sayville Dairy Sold a Delivery Truck for Cash of $8,680