Selected information from the company's financial records is presented below: During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year.
-Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment?
A)$50,000
B)$20,000
C)$10,000
D)$30,000

Question

Selected information from the company's financial records is presented below:  During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year.
-Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment?
A)$50,000 
B)$20,000 
C)$10,000 
D)$30,000

Quizplus · Accepted Answer

The cash proceeds from the sale of equipment would be the sum of the gain and the accumulated depreciation, which is $10,000 + $30,000 = $30,000. Therefore, the correct choice is D.

Selected Information from the Company's Financial Records Is Presented Below