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

question 257

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.
$$\begin{array} { | l | r | r | } \hline \text { At December 31 } & \text { Year 2 } & \text { Year 1 } \\\hline \text { Equipment } & \$ 510,000 & \$ 750,000 \\\hline \text { Accumulated Depreciation-Equipment } & 328,000 & 500,000 \\\hline\end{array}$$

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

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