Mercury Company reports depreciation expense of $41,000 for Year 2. Also, equipm

Question

Mercury Company reports depreciation expense of $41,000 for Year 2. Also, equipment costing $143,000 was sold for its book value in Year 2. There were no other equipment purchases or sales during the year. The following selected information is available for Mercury Company from its comparatlve balance sheet. Compute the cash recelved from the sale of the equipment. At December 31 Equipment Accumulated Depreciation-Equipment Year 2 Year 1 $615,000 $758,000 432,000 505,000 Multiple Choice $41,000 570,000 $36,500 573,000 $29,000

Explanation / Answer

E. $29,000

Accumulated depreciation on equipment sold = $505,000 + $41,000 - $432,000 = $114,000

Cash received = $143,000 - $114,000 = $29,000

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