TJ Enterprises’ equipment account increased $43,000 during the period; the related accumulated depreciation increased $14,000. New...

TJ Enterprises’ equipment account increased $43,000 during the period; the related accumulated depreciation increased $14,000. New equipment was purchased at a cost of $58,000 and used equipment was sold at a loss of $4,000. Depreciation expense was $19,000. How much is proceeds from the sale of the used equipment? a. $10,000 b. $15,000 c. $6,000 d. $14,000

Expert Solution

c. $6000 is correct answer.

Computation of Proceed received from sale of Equipment
Original Value of Equipment Sold	15,000
( Equipment Purchase- Equipment A/c Increased )
($58000-$43000)

Depreciation on Equipment Sald	5,000
( Depreciation Expense - Accumulated Depriciation Increased)
(19000-$14000)
Book Value of Equipment sold ( $15000-$5000)	10,000
Loss on sale of Equipment	4,000
Total Proceed received from Sale of Equipment ( 10000-$4000)	6,000
Computation of Proceed received from sale of Equipment
Original Value of Equipment Sold	15,000
( Equipment Purchase- Equipment A/c Increased )
($58000-$43000)

Depreciation on Equipment Sald	5,000
( Depreciation Expense - Accumulated Depriciation Increased)
(19000-$14000)
Book Value of Equipment sold ( $15000-$5000)	10,000
Loss on sale of Equipment	4,000
Total Proceed received from Sale of Equipment ( 10000-$4000)	6,000

ekkarill92 answered 4 months ago

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