Mercury Company reports depreciation expense of $46,000 for Year2. Also, equipment costing $159,000 was...

80.2K

Verified Solution

Question

Accounting

Mercury Company reports depreciation expense of $46,000 for Year2. Also, equipment costing $159,000 was sold for its book value inYear 2. There were no other equipment purchases or sales during theyear. The following selected information is available for MercuryCompany from its comparative balance sheet. Compute the cashreceived from the sale of the equipment.
At December 31 Year 2 Year 1
Equipment $640,000 $799,000
Accumulated depreciation-equipment 452,000 530,000
a
$35,000.
b
$81,000.
c
$78,000.
d
$39,000.

Answer & Explanation Solved by verified expert

4.3 Ratings (581 Votes)

All working forms part of the answer The question says that the equipment has been sold at its book value Book Value of equipment Cost Accumulated Depreciation till the time of sale Cost of the equipment See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingMercury Company reports depreciation expense of $46,000 for Year2. Also, equipment costing $159,000 was sold...Mercury Company reports depreciation expense of $46,000 for Year2. Also, equipment costing $159,000 was sold for its book value inYear 2. There were no other equipment purchases or sales during theyear. The following selected information is available for MercuryCompany from its comparative balance sheet. Compute the cashreceived from the sale of the equipment.At December 31Year 2Year 1Equipment$640,000$799,000Accumulated depreciation-equipment452,000530,000a$35,000.b$81,000.c$78,000.d$39,000.

At December 31	Year 2	Year 1
Equipment	$640,000	$799,000
Accumulated depreciation-equipment	452,000	530,000