Answer: a. $35,000.
Explanation:
Given Data:
Starting Balance = $530,000
Closing Balance = $452,000
Depreciation expenses = $46,000
computing of cash received we need to balance the depreciation.
Accumulated depreciation = Starting balance of accumulated depreciation + depreciation expense - Closing balance of accumulated depreciation
= $530,000 + $46,000 - $452,000
= $124,000
subtracting this amount from the sale value of the equipment.
= $159,000 - $124,000
= $35,000
Cash received from sale of equipment is $35,000
Answer:
The cash received from selling the equipment is $35000
Explanation:
To calculate the sales proceeds from the equipment, we need to calculate the book value of the equipment that is sold.
Book value = Cost - Accumulated depreciation
The accumulated depreciation on the equipment sold can be calculated by calculating the change in overall accumulated depreciation. Using the following equation to calculate the closing balance of accumulated depreciation, we can calculate the accumulated depreciation for the equipment that is sold.
Closing balance = Opening balance + Depreciation expense for the year - Accumulated depreciation on the asset disposed
Let Accumulated depreciation on the asset disposed be x.
452000 = 530000 + 46000 - x
x = 576000 - 452000
x = 124000
Thus, the book value of the asset sold was,
Book value = 159000 - 124000 = $35000
As the asset is sold for its book value, the cash received from sale is also $35000
