Proceeds from sale of equipment
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Lawford Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000.
Depreciation expense was $100,000. Proceeds from the sale of the used equipment were
a. $210,000.
b. $250,000.
c. $280,000.
d. $320,000.
Please explain your answer.
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Solution Summary
This solution explains how to calculate the proceeds from the sale of equipment in the given accounting problem.
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The equipment account increased 400,000 while new equipment purchased is 700,000. This implies that the cost of equipment sold ...
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