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

question 148

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.
$\begin{array}{|l|l|l|}\hline \text { At December 31 } &{\text { Y ear 2 }} & \text { Y ear 1 } \\\hline \text { Equipment } & \$ 610,000 & \$ 750,000 \\\hline \text { Accumulated Depreciation-Equipment } & 428,000 & 500,000\\\hline\end{array}$

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

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Definitions:

Disparities

Inequalities or differences, often in the context of social, economic, or health outcomes among different populations.

Wealth

An abundance of valuable material possessions or resources, including money, property, and other assets.

Institutionalized

The process of establishing something as a norm or standard within a structured system or organization, often associated with formal rules and conventions.

Superiority of Reason

The belief that reason and logical thinking are the highest means of understanding or solving problems, superior to emotion or faith.