On 31 December 2019 an item of machinery had a cost of $300 000 and accumulated depreciation of $280 000. If the machinery was sold for a profit of $30 000 on 1 January 2020, how much was recorded as income from the proceeds of the sale?

Question

Quizplus · Accepted Answer

The machinery was sold for a profit of $30 000, so the proceeds from the sale would be $280 000 + $30 000 = $310 000. 
The amount recorded as income from the sale would be the proceeds minus the cost of the machinery, which is $310 000 - $300 000 = $10 000. 
Therefore, the correct choice is B.

On 31 December 2019 an Item of Machinery Had a Cost