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

question 139

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.There were no other equipment purchases or sales during the year.The following selected information is available for Mercury Company from its comparative balance sheet.Compute the cash received from the sale of the equipment.
$$\begin{array} { | l | r | r | } \hline \text { At December 31 } & \text { Year 2 } & \text { Year 1 } \\\hline \text { Equipment } & \$ 600,000 & \$ 750,000 \\\hline \text { Accumulated Depreciation-Equipment } & 428,000 & 500,000 \\\hline\end{array}$$

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

---

Definitions:

Nonverbal Behaviors

Forms of communication that do not involve words, such as gestures, facial expressions, and body language, used to convey messages or emotions.

Making Eye Contact

The act of looking directly into another person's eyes, which can communicate confidence, sincerity, and engagement.

Dietary Evaluation

The assessment of an individual's dietary intake and habits to identify areas for nutritional improvement.

Blood Glucose

The level of sugar present in the blood, crucial for managing energy supply in the body, significant for those with conditions like diabetes.