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Homework answers / question archive / Blanket Corporation sold equipment for cash of $40,500
Blanket Corporation sold equipment for cash of $40,500. Accumulated depreciation on the sale date amounted to $34,000 and a loss of $1,800 was recognized on the sale. What was the original cost of the asset?
A. $72,300
B. $75,900
C. $4,700
D. $76,300
E. $42,300
Answer:
D .
Step-by-Step explanation
Calculate the original cost of the equipment as follow:
Cost of Equipment = Book Value + Accumulated Depreciation
= (Sales Proceeds + Loss) + Accumulated Depreciation
= ($40,500 + $1,800) + $34,000
= $76,300
Thus, the original cost of the given equipment is $76,300.
