Halbur Company reported the following for its recent year of operation: No new equipment was purchased during the year.What was the selling price of the equipment?
A)$3,900.
B)$1,000.
C)$900.
D)$600.

Question

Halbur Company reported the following for its recent year of operation:  No new equipment was purchased during the year.What was the selling price of the equipment?
A)$3,900. 
B)$1,000. 
C)$900. 
D)$600.

Quizplus · Accepted Answer

The equipment was purchased for $1,800 and had accumulated depreciation of $900 at the end of the year. This means that the book value of the equipment was $900 ($1,800 - $900). The company sold the equipment for $1,800, which is $900 more than the book value ($1,800 - $900 = $900). Therefore, the selling price of the equipment was $900.

Halbur Company Reported the Following for Its Recent Year of Operation