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

question 110

Multiple Choice

Mercury Company reports depreciation expense of $40,000 for Year 2.Also,equipment costing $150,000 was sold for its book value in Year 2.The following selected information is available for Mercury Company from its comparative balance sheet.Compute the cash received from the sale of the equipment.

• A)$32,000.
• B)$68,000.
• C)$38,000.
• D)$40,000.
• E)$36,000.

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Definitions:

Agency Law

The legal framework that regulates the relationship between agents who are authorized to act on behalf of principals, and the principals themselves, establishing duties and rights.

Sale Of Goods

The transaction between a buyer and a seller in which the ownership of physical products is transferred from the seller to the buyer for a price.

Capacity To Contract

The legal ability of a party to enter into binding contracts, typically requiring legal age and mental competency.

Agent

An agent is a person or entity authorized to act on behalf of another person or entity, known as the principal, in legal or business matters.