Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000.This implies that $30,000 cash was received from the sale.

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Isaac Peppers · Accepted Answer

Final Answer : True, Explanation :  The equipment was sold at a loss of $10,000. This means that the selling price was $190,000 ($200,000 - $10,000 loss).The accumulated depreciation of the equipment was $160,000. This means that the book value (or carrying value) of the equipment was $40,000 ($200,000 - $160,000).If the selling price was $190,000 and the book value was $40,000, then the cash received from the sale must be $150,000 ($190,000 - $40,000). Therefore, the statement that $30,000 cash was received from the sale is false.

Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000.This implies that $30,000 cash was received from the sale.

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