Question

Save Green Company reports depreciation expense of $51.000 for Year 2. Also, equipment costing $173.000 was sold for a 56100 gain in Year 2 The following selected information is available for Green Company troms comparative balance sheet Compute the cash received from the sale of the equipment Help Save & Ext Sub At December 31 Equipment Accumulated Depreciation-Equipment Year 2 Year 1 $665,000 $838,800 472,000 555,000 Multiple Choice $51,000. о $32.900 $45.100 O $90,000 ОО $39,000 Next > 12 of 36 < Prey SAMSUNG SH to search

Answer 1

Correct Answer:

Option: $ 45,100

Working:

Beginning balance accumulated depreciation	$ 555,000.00
Add: depreciation for Current year	$ 51,000.00
	$ 606,000.00
Less: Ending Balance in accumulated depreciation	$ 472,000.00
Depreciation on asset sold	$ 134,000.00

Cash received on sale of Equipment
Cost of Equipment sold	$ 173,000.00
Less: Accumulated Depreciation	$ 134,000.00
Book value of Equipment	$ 39,000.00
Add: Profit on sale	$ 6,100.00
Sale proceeds	$ 45,100.00

End of Answer.

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