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Jeffreys Company reports depreciation expense of $48,000 for Year 2. Also, equipment costing $164,000 was sold for a $10,800 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31 Year 2 Year 1 Equipment $ 650,000 $ 814,000 Accumulated Depreciation-Equipment 460,000 540,000

Respuesta :

Answer:

The cash received from the sale of the equipment is $69,200

Explanation:

The calculation of cash received from the sale of equipment is shown below:

= Change in accumulated depreciation - loss on sale of equipment

where,

Change in accumulated depreciation = Year 1 balance - Year 2 balance

                                                              = $540,000 - $460,000

                                                              = $80,000

And, the loss on sale of equipment is equal to $10,800

Now put these values on the above equation.

So,

Cash received = $80,000 - $10,800 = $69,200

The other cost like depreciation expenses, equipment costing, year 1 and year 2 equipment balance is not be taken in the computation part.

Hence, the cash received from the sale of the equipment is $69,200

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