Favre Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Favre Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

Question

Quizplus · Accepted Answer

Accumulated depreciation on equipment sold = $500,000 + $40,000 − $328,000 = $212,000
Cash received = ($240,000 − $212,000) − $10,000 = $18,000 11eaadfd_cc43_38a5_95d8_5b8a81ed88c9_TB6948_00

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