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

question 9

Multiple Choice

Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 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.
$\begin{array}{|l|l|l|}\hline \text { At December 31 } &{\text { Y ear 2 }} & \text { Y ear 1 } \\\hline \text { Equipment } & \$ 510,000 & \$ 750,000 \\\hline \text { Accumulated Depreciation-Equipment } & 328,000 & 500,000\\\hline \end{array}$

• A)$62,000.
• B)$58,000.
• C)$18,000.
• D)$38,000.
• E)$28,000.

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Definitions:

Intramolecular Aldol

A chemical reaction where an aldol condensation occurs within a single molecule, forming a cyclic compound.

2,6-heptanedione

An organic compound characterized by a seven-carbon chain with ketone groups located at the second and sixth carbons.

Crossed Aldol Reaction

An aldol reaction where two different aldehydes or ketones are combined in the presence of a base or acid to produce a β-hydroxy aldehyde or ketone.

Self-aldol Condensation

A reaction where an aldehyde or ketone undergoes condensation with itself in the presence of a base to form a β-hydroxycarbonyl compound (an aldol) or a dehydrated version thereof.