Gloucester Associates sold office equipment for cash of $142,000.The accumulated depreciation at date of sale amounted to $138,000,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 can be calculated by adding the cash received from the sale ($142,000), the accumulated depreciation ($138,000), and subtracting the gain recognized on the sale ($18,000). This gives us $142,000 + $138,000 - $18,000 = $262,000.

Gloucester Associates Sold Office Equipment for Cash of $142,000