Equipment with an Original Cost of $75,000 and Accumulated Depreciation

question 77

Multiple Choice

Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of this transaction, cash would

• A) increase by $48,000
• B) decrease by $7,000
• C) increase by $55,000
• D) decrease by $27,000