Suffolk Associates sold office furniture for cash of $42,000. The accumulated depreciation at date of sale amounted to $38,000, and a gain of $18,000 was recognized on the sale. The original cost of the asset must have been:

Question

Quizplus · Accepted Answer

The original cost of the asset is the sum of the accumulated depreciation and the gain recognized on the sale. Therefore, the original cost of the asset is $38,000 + $18,000 = $56,000.

Suffolk Associates Sold Office Furniture for Cash of $42,000