Jamison Company Reports Depreciation Expense of $35,000 for Year 2

question 138

Multiple Choice

Jamison Company reports depreciation expense of $35,000 for Year 2.Also,equipment costing $140,000 was sold for a $5,000 gain in Year 2.The following selected information is available for Jamison Company from its comparative balance sheet.Compute the cash received from the sale of the equipment. $\begin{array}{lrr}\text { At December 31 } & \text { Year 2 } & \text { Year 1 } \\\text { Equipment } & \$ 610,000 & \$ 750,000 \\\text { Accumulated Depreciation-Equipment } & 428,000 & 500,000\end{array}$

• A)$23,000.
• B)$35,000.
• C)$38,000.
• D)$40,000.
• E)$67,000.

Recognize management functions within the manufacturing environment, including planning, directing, and controlling.

Understand the implications of automation on product cost components.

Differentiate between various cost elements involved in manufacturing a product.

Comprehend the concept of inventoriable costs and period costs and their treatment in financial statements.